For the LOVE of Bean Bags

I had a stressful week. To relax nowadays, I go to the gym, take a walk, or watch poker videos.

When I was young, one of my favorite ways to wind down was to do lie on my bean bag while wearing Abercrombie and Fitch (ANF).

I recently took a look at ANF and was shocked. Did you know that ANF nearly tripled in stock price in 2023, outperforming even Nvidia (NVDA)? One company is a 90s fashion retailer, the other is at the forefront of AI chip development.

Since ANF is likely played out, I turned my attention to the next best thing - the Abercrombie and Fitch of bean bags, LoveSac (LOVE).

Millennials may remember LoveSac beanbags, which were big enough to fit four of your best friends (five if you squeeze). These were a staple for movie nights and video game marathons. I digress.

Let’s take a look at interesting insider buying and selling behavior at LOVE.

Satori Capital

The investment firm Satori Capital purchased $3.8 million of LOVE on 12/11/2023 at a share price of $25.46.

Satori is no stranger to LOVE (pun intended).

Satori invested $10 million in LOVE on 6/26/2017, exactly one year before LOVE’s IPO on 6/26/2018. Since the IPO, Satori sold over $70 million in shares, realizing 7x+ their initial investment. They still own ~$10 million worth of shares in LOVE.

With their purchase on 12/11/2023, Satori increased ownership by ~32% - a strong signal from an investment firm that is intimately familiar with LOVE (too easy!).

Andrew Heyer

Andrew is the Chairman of the Board of Directors at LOVE. He is the founder of multiple private equity funds and is currently the CEO of Mistral Equity Partners.

Andrew purchased ~$235K of LOVE on 12/27/2023 at a share price of $26.00. Here is Andrew’s history of buying and selling LOVE.

The chart above shows that Andrew is a savvy investor who has consistently purchased low and sold high.

Shawn Nelson

Shawn is the CEO and founder of LOVE. Shawn sold $459k of LOVE at a share price of $24.70 on 12/13/2023.

Shawn has sold eight times over the last four years at various prices between $26 to $69 per share. Each sale amount was between $150k - $400k.

We have not detected any pattern in Shawn’s selling behavior.

What do you think? Is it time to give LOVE another chance?

Is it Microcap or Penny Stock?

I had an interview with the CEO of LQR House (LQR) this past week.

I wasn’t sure if I wanted to include it in this article. LQR trades under a $25 million market cap and under $5 per share, making it both a microcap and penny stock (respectively). And microcap and penny stocks involve REAL risks:

• Price manipulation

• Excessive brokerage mark ups

• Lack of information

• Extreme volatility

• Difficulty selling

But in some ways, these risks aren’t too different from angel investing in startups and some may view microcap and penny stocks as safer investments than the latest crypto memecoin. So in pursuit of the goal of increasing transparency into the world of stock investing, StockOcean’s coverage may sometimes include analyses of microcap and penny stock.

We have decided that we will not take long or short positions in any company we cover. If we write about a company whose stock we hold, we will always disclose that we have a stake. I will write more about this in an official post on our website.

LQR House (LQR)

LQR house operates in the alcohol industry as an e-commerce player, marketing agency, and brand owner. Sean Dollinger is the CEO of LQR and was previously the founder of PlantX and Lifeist (formerly Namaste), both microcap stocks that have traded down significantly.

To give you a sense of the volatility of microcap stocks, here is the 1 year price chart for LQR:

Now, here is the 1 month price chart for LQR.

Sean purchased ~$106k worth of stock on the open market on 12/21/2023. I reached out and he agreed to an interview.

Sean did not preempt any questions and the video posted below is unedited.

Take a look and let me know what you think!

That’s all for this week, follow us on Twitter for real-time thoughts, subscribe to our newsletter, and sign up on StockOcean for free insider buying and selling alerts.