TBLT is starting off strong this morning and trending green.

SmallCapFirm

Trending Green Early, Nasdaq Idea (TBLT) Could Continue Streaking Up The Charts Today (Here's Why)

Maxim Group Provides $2.50 Price Target

Barchart Reports "100% BUY" In The Short Term

January 19th

SCF Readers,

TBLT is starting off strong this morning and trending green.

Hitting a high of $1.39 so far, TBLT has now risen to levels it hasn't seen since May 18th of 2020.

Could we see a continued TBLT move up the charts today? Bullish technical indicators may be signaling such a surge.

Barchart continues to report this profile as a "100% BUY" in the short-term based on technicals with a triggered composite "TrendSpotter" indicator included.

In fact, it was only last month that Barchart reported TBLT as a "32% SELL" based on technical indicators.

As TBLT has heated up in recent weeks, it is still a ways off from its 52-Week high of $3.05 which means there may be more room to grow moving forward.

If you haven't yet, read my initial report below and get TBLT on your radar.

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The opening bell just rang so we need to dive in quickly...

The future of the global construction industry looks good with opport*unities in residential, non-residential, and infrastructure.

According to Research and Markets, the global construction industry is expected to reach an estimated $10.5Tn by 2023, and it is forecast to grow at a CAGR of 4.2% from 2018 to 2023.

Because of this expected growth, this company could take a major advantage as its products can be necessary components in the success of construction in the large, medium, and small scales.

For these reasons and more that I'll highlight in my report, there is only one Nasdaq profile to have on your radar today:

*ToughtBuilt Industries, Inc. (TBLT)*

ToughBuilt is a leading designer, manufacturer and distributor of innovative tools and accessories to the building industry. They market and distribute various home improvement and construction product lines for both the professional and DIY markets under the TOUGHBUILT® name.

And in November of 2020, Maxim Group upped their analyst price target for TBLT.

#1. TBLT Potential Catalyst - Analyst Price Target

After an in-depth analyst of TBLT, Maxim Group upped their previous $2 price target to a new $2.50 target while reiterating a "Buy" status on this profile.

Here is the summary and key details of their report:

  • 3Q20 beats across the board as solid segment sales drive total revenue up 248% y/y and positive GAAP net income.
  • Previously announced major partnerships, including Lowe's, are likely to serve as a significant sales catalyst for ToughBuilt.
  • We raise estimates despite continued uncertainty due to extended impact from CV-19, but we remain confident in the company’s near-term growth initiatives.
  • Given the recent $20M+ public offering of common shares and warrants in June, we do not believe TBLT will require additional capital in the foreseeable future.
  • TBLT is up 14% QTD, but down 60% YTD; with shares trading at 0.4x our increased 2021 revenue estimate vs. peers at 2.0x, we reiterate our Buy rating and increase our price target to $2.50, from $2, representing 1.5x our 2021 revenue estimate.

We expect previously announced partnerships with Lowe's and Tractor Supply to serve as a significant sales catalyst in 4Q and 2021. On April 9, ToughBuilt announced that Lowe’s awarded a portion of its soft-sided tool storage business and all of its kneepad business to ToughBuilt. The arrangement is expected to include 30 SKUs and amount to $22.7M in revenues over the first 12 months following initial launch, which we believe started shipping in September 2020; products will be sold at Lowe’s nationwide store locations and online. Lowe’s is a Fortune 50 company with 2,200 physical store locations across the United States and Canada. Separately, on May 12, ToughBuilt announced a new partner w-i-n with Tractor Supply Company (private), which is expected to result in the immediate placement of 81 TBLT product SKUs. Tractor Supply Company is considered the largest operator of rural life.

Read the full report here.

From Friday's close of $1.26, this new price target provides TBLT with upside potential of 98%.

Now, I'm not saying TBLT is going to go rocketing to those levels today, but you need to be aware of the potential upside that Maxim Group is tagging this profile with.

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#2. TBLT Potential Catalyst - Record Q3 Results

ToughBuilt™ Announces Record Third Quarter 2020 Results

Lake Forest , Calif, Nov. 09, 2020 (GLOBE NEWSWIRE) -- ToughBuilt Industries, Inc. (“ToughBuilt®” or the “Company”) (NASDAQ: TBLT; TBLTW) announced today its unaudited results for the third quarter and nine-months ended September 30, 2020.

Operating Results for the Three Months Ended September 30, 2020

  • Net sales for three-month period ended September 30, 2020 were $16.6Mn, an increase of 248% from $4.7Mn for the same period in 2019.

Operating Results for the Nine Months Ended September 30, 2020

  • Net sales for the nine-month period ended Sept 30, 2020 were $27.4Mn, an increase of 88% from $14.5Mn for the same period in 2019.
  • Gross pro-fit increased by 203% to $11.6Mn in the nine months ended Sept 30, 2020, from $3.8Mn for the same period in 2019.

Michael Panosian, ToughBuilt’s Chief Executive Officer, commented, “ToughBuilt delivered record [...] results across the board, despite the CV-19 pandemic impacting the industry globally. I am proud of our tough team and grateful to all retail partners, international manufacturers and global distributors for their ama*zing support and efforts. We continue to navigate today’s complex business landscape and are encouraged to implement more development and growth in all Markets.

During the third quarter, we increased our inventory levels to ensure timely delivery of products, increased our product pipeline, expanded our customer and manufacturing relationships internationally and utilized our Amazon(dot)com storefront to create more brand awareness and sales to service our end users. We remain committed and confident to providing market-leading innovative quality products for the professionals and other passionate builders.

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#3. TBLT Potential Catalyst - Bullish Technical Indicators

As of close Friday, TBLT was displaying a multitude of bullish technical indicators according to Barchart.

They include:

Short Term Indicators

  • 20 Day Moving Average
  • 20 - 50 Day MACD Oscillator
  • 20 - 100 Day MACD Oscillator
  • 20 - 200 Day MACD Oscillator

Medium Term Indicators

  • 50 Day Moving Average
  • 50 - 100 Day MACD Oscillator
  • 50 - 150 Day MACD Oscillator

Long Term Indicators

  • 100 Day Moving Average
  • 150 Day Moving Average
  • 200 Day Moving Average

Additionally, Barchart is reporting its composite "TrendSpotter" indicator to be triggered as bullish too.

Furthermore, with several of its technicals triggered as bullish, Barchart is reporting TBLT as a "100% BUY" in the short term.

Could this be a sign of a continued vertical move today and the days ahead?

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#4. TBLT Potential Catalyst - Red Hot Chart / Support Levels

Take a peek now at TBLT's 6-month chart below:

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As you can see, TBLT was in somewhat of a channel between $.95 and $.60 since July before heating up recently.

With this current vertical surge, TBLT is now trading above 3 key lines of potential support.

Those are the following:

  • 13-Day Exponential Moving Average
  • 50-Day Simple Moving Average
  • 200-Day Simple Moving Average

But, why is this important?

When a profile trades above these levels, they can give traders confidence of strong potential support.

With strong potential support, a profile may continue to move vertically as we've seen in recent days.

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#5. TBLT Potential Catalyst - Hedge Funds Take Notice

From Insider Monkey:

Hedge fund activity in ToughBuilt Industries, Inc. (NASDAQ:TBLT)

At Q3's end, a total of 4 of the hedge funds tracked by Insider Monkey were long this sto-ck, a change of 33% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish positions in TBLT over the last 21 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).

image

When looking at the institutional inv-estors followed by Insider Monkey, Ken Griffin's Citadel Inv-estment Group has the most valuable position in ToughBuilt Industries, Inc. [...]. The second largest stake is held by Millennium Management, led by Israel Englander [...]. Some other hedge funds and institutional inv-estors that hold long positions encompass Bart Baum's Ionic Capital Management, Sander Gerber's Hudson Bay Capital Management and. In terms of the portfolio weights assigned to each position Ionic Capital Management allocated the biggest weight to ToughBuilt Industries, [...].

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TBLT Potential Catalysts Recap (Top 5)

#1. Analyst Price Target

#2. Record Q3 Results

#3. Bullish Technical Indicators

#4. Red Hot Chart / Support Levels

#5. Hedge Funds Take Notice

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Coverage is officially initiated on TBLT starting now. When you have a moment later, do this:

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If there are any more updates this morning, I'll get them out to you quickly.

Sincerely,

Axel Adams

Editor, SCF


(Always Remember The Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)​

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