MicroCapClub Invitational: FitLife Brands (FTLF)

Ian Cassel 2014 Invitational, Blog 3 Comments

FitLife Brands (FTLF) is a profitable and fast growing nutritional supplements company that is the #1 vendor in the GNC franchise system. The company has showcased a 39% CAGR over the last three years, and expects to grow at a double digit CAGR over the next 3-5 years. John Wilson, CEO of FitLife, and his management team have successfully turned the company around since he joined the company in 2009.  In September of 2013, the company completed a recapitalization, which cleaned up the share structure and balance sheet. We feel the perceived customer concentration risk with GNC Holdings (GNC) isn’t well understood by the market, and creates an interesting value proposition for investors. Listen to CEO John Wilson as he tells the story.

Disclosure: All participants are LONG FTLF. This presentation was recorded on January 6th. All participants were not active in the stock on January 6th. The company DID NOT compensate MicroCapClub to present.

More information on the MicroCapClub Invitational and presentation schedule can be found [HERE].

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Comments 3

  1. FTLF THE PRESENTATION WAS GOOD BUT NOT ENOUGH ON THE ACTUAL PRODUCTS—-HOW MADE –ARE COSTS VARIABLE — WHO ARE THE SUPPLIERS FOR THE PRODUCT—HOW IS IT DECIDED WHAT SHOULD BE THE FORMULATION—

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  2. FTLF has very high risk with GNC. GNC is never going to let any of their products into the corporate stores as GNC is now going to the vertical integration model. They produce more and more of their own products and put them on their shelves. GNC is not dumb. They see what buys like FTLF are doing, then the copy it quickly and come out with their own GNC branded products. Soon, almost nothing in the GNC corporate stores will be anything BUT GNC brand products. That is why the market cap of this company is low. Limited opportunity for growth unless they do something. Suggestion – form a subsidiary and acquire existing brands that sell products outside the GNC system. Don’t count on the franchisee’s to grow the business (except perhaps internationally) and don’t expect GNC corporate to do you any favors!

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