There is a single deli in New Jersey that has $ 35,000 worth of $ 100 million in publicly traded sales
Your deli in your hometown in Paulsboro, NJ
Hedge fund manager David Einhorn warned of the dangers to retail investors he sees in the market, and one of his prime examples was a tiny New Jersey deli with a market cap of more than $ 100 million.
Your Hometown Deli, based in Paulsboro, New Jersey, is the only Hometown International location to have an impressive market value despite total sales of $ 35,748 over the past two years.
“Somebody pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey … HWIN reached a market cap of $ 113 million on February 8th. The largest shareholder is also the CEO / CFO / Treasurer and a director. The pastrami must be amazing, “Einhorn said in a letter to customers posted on Thursday.
The hometown, which apparently started trading in 2019, according to FactSet, has stocks that are traded over the counter and rarely more than a few hundred stocks change hands a day. Often no trades are logged for an entire trading day.
However, according to FactSet, the company’s market cap is just over $ 100 million.
The hometown did not immediately return a request for comment on the phone number listed on the company’s security filings. A manager was not available to comment on the deli’s phone number.
The company’s only location was closed from March 23 to September 8 last year due to the coronavirus pandemic, according to the company’s most recent 10-K announcement. During that time, the company’s share price rose from $ 3.25 per share to $ 9.25 per share. It was last trading at just under $ 14 per share.
The company sold 2.5 million shares last year and has around 60 shareholders in total, according to a filing.
The hometown reported spending more than $ 600,000 last year, down from around $ 154,000 in 2019. The company also reported net cash gains of $ 2.2 million from financing activities such as selling shares in 2020.
Einhorn’s emphasis on Hometown comes from the fact that politicians, regulators, and high-profile investors have publicly resented the boom in certain types of stocks over the past year.
As a new wave of retail investors hit the market in recent months, special-purpose acquisition companies have taken off at record pace, and some stocks like GameStop and Discovery have swung wildly after being bid by traders on Reddit or hedge funds.
Often referred to as pink sheets and penny stocks, the over-the-counter stock market has historically been a risky place for investors. Penny Stocks’ stocks have also risen sharply in recent months.
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