It’s been all downhill for Lark (LRK) shares since February 2022 when the media released a video of the CEO Mark Bainbridge smoking a crack pipe. Mark subsequently quit due to the fall out. For shareholders it was a real shame because the guy seemed to be the major driving force behind the company’s rapid growth.
But with the stock down 70% over the past 18 months, we think the technical downtrend is on the verge of being broken and some very decent fundamental value has emerged.
First the chart….
Lark has been making a series of lower lows (LL) and lower highs (LH) which is typical of a downward trending stock. However, the recent higher low (HL) made on the 17th of August could indicate we are about to see a change in the trend. It is still early days, but technically the chart is promising in our view.
What could Lark’s Whisky Bank be worth?
Lark has grown it’s maturing whisky bank up to 2.4 million litres. This is obviously the key asset that will support the growth of the company. Last financial year the Net Sales Value per litre hit $280 with gross profit margins at a solid 68.9% or $192.92 per litre. So if we give that figure another haircut of 50% and take it down to $96 per litre we could come to a value of $230 million or $3.04 per share.
Bottoms Up!!… BUY last sale $1.50