Don’t Make My Size Your Problem

[View in browser]( [The Spill Logo] Proprietary Data Insights Financial Pros’ Top Online Business Software Searches in the Last Month Rank Name Searches #1 'My Size 292 #2 'Crowdstrike 234 #3 'Salesforce.com 135 #4 'Twilio 130 #5 'Shopify 92 #ad [It's time you learn about Alternative Investments!]( Brought to you by [The Juice]( [Stay Ahead, With a Daily Dose of Investing Insights]( [The Juice - Stay Ahead, With a Daily Dose of Investing Insights]( Learn about the investing world’s best-kept secrets through insights from smart investors. Subscribe to The Juice newsletter for FREE to gain a clear understanding of the investment world to make informed money decisions. [Subscribe now.]( Don’t Make My Size Your Problem Stocks are like kids in high school. Traders flock to the popular ones. But it's the kids who put their noses in the books that make money in the long run. My Size (MYSZ) is one of the coolest products we’ve come across. And it solves an immediate and consistent problem - online sizing. But despite financial pros looking at this stock more than ANY other application software name this month, we wouldn’t touch this stock with a 10-foot pole. My Size’s Business Ever struggled with finding the perfect fit when shopping online? My Size swoops in like a sizing superhero. Hailing from Israel, they're here to make shopping life a heck of a lot easier and save retailers a bundle on returns. Imagine creating your own digital sizing profile with MySizeID or using your smartphone to measure a package with BoxSize. That’s what they do. They've also dabbled in retail magic with Naiz, a smart mirror that's practically pulled from a sci-fi flick, promising an interactive shopping experience like no other. MYSZ's pie is sliced into three somewhat uneven pieces: - Fashion and Equipment E-Commerce Platform (86% of total revenue): Most of the dough comes from their acquisition of Orgad, the cool kid of omnichannel e-commerce. - SaaS Solutions (14% of total revenue): This slice includes those nifty sizing apps that are being snapped up by major fashion brands. - Naiz (0% of total revenue): A slice so thin, it's practically nonexistent. Smart mirrors are cool but, alas, haven't pulled in any cash yet. So despite this being a ‘technology’ company, most of the sales come from regular old online fashion sales. Not a good sign for their main value proposition. Financials [Financials] Source: Stock Analysis As is typical for a penny stock, My Size’s revenues showed explosive growth. However, their starting point of nothing makes that pretty easy. And let’s not kid ourselves. This company loses money hand over fist. All its margins are negative, and operating cash flow burns through nearly $7 million a year, which is kind of a problem when you barely make more than $5.25 million in revenues. The final kick in the pants is the continual dilution to raise capital in order to fund the failing operations. Total shares outstanding went from 1 million to 2.5 million in just two years. That’s not a good sign. Valuation [Valuation] Source: Seeking Alpha Obviously, the valuations aren’t great for MYSZ. But what’s particularly notable is the basement price-to-sales ratio. This metric is useful to evaluate startups that have yet to reach profitability. The fact that MYSZ is so far below 1.0x says investors have no confidence in the company. Growth [Growth] Source: Seeking Alpha The growth for MYSZ is misleading, given that it’s starting point was near zero. Forecasts for a +300% forward growth seem rather arbitrary, though possible. We can’t tell since the majority of its revenues come from its non-core business. Profitability [Profit] Source: Seeking Alpha While My Size has a positive gross margin, that’s all they have going for them. Our Opinion 0/10 We’d give this stock a negative rating if possible. The company has more red flags than the Florida coast in the middle of a hurricane. We’ve also seen this company spend money on investor relations promos to pump up the share price. That’s as close to a guarantee as you can get that the stock is headed for the toilet at some point. 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