Charles & Colvard Ltd. (CTHR) research, news, and more from GeoInvesting

Company description

Wed, 30 Jul 2008 04:00:00 GMT

Charles and Colvard manufacture, market and distribute moissanitejewels for sale in the worldwide jewelry market. Moissanite, also known by its chemical name, silicon carbide, is a rare, naturally occurring mineral found primarily in meteorites. The Company is the sole manufacturer of scientifically-made moissanite jewels. Their strategy is to create a unique brand image which positions moissanite as a jewel in its ownright, distinct from all other jewels based on its fire, brilliance, luster, durability and rarity.

Research

Mon, 20 Sep 2021 11:42:06 GMT

Closed Long Position In CTHR
In May 2021 we initiated a long position in Charles & Colvard Ltd. (NASDAQ:CTHR) ($2.88; $86.1M market cap), a jewelry manufacturer, based on strong Q2 2021 results. We decided to move on to other opportunities as current top and bottom line estimates call for little to no growth for 2022 and muted growth into 2023. We will continue to watch for possible acquisitions and/or new partnerships that can accelerate growth.

Research

Fri, 03 Sep 2021 14:48:26 GMT

Charles & Colvard Ltd. (NASDAQ:CTHR) ($3.23; $96.4M market cap), a jewelry manufacturer announced Q4 2021 results: (announced preliminary results on August 26, 2021)

Sales of $9.7 million vs $4.4 million in the prior year and ahead of analyst estimates of $8.4 million
Non-GAAP EPS of $0.03 vs a loss of $0.04 in the prior year and slightly ahead of analyst estimates of $0.02

"We were able to increase both our Online Channels and Traditional segments by 86% and 189% respectively compared to the year-ago quarter, which included expanding our finished jewelry net sales 86% and our loose jewels net sales by 190% compared to the year-ago quarter. We continued to strive to elevate shareholder value as evidenced by the more than 300% increase in our stock price year-over-year. Looking ahead, we intend to continue to execute on our strategic initiatives: expanding our brand presence, enhancing customer engagement, and focusing on design and product development, all the while utilizing innovative, technology to drive disciplined, top-line growth,"

Research

Fri, 07 May 2021 13:47:07 GMT

Charles & Colvard Ltd. (NASDAQ:CTHR) ($3.66; $106.8M market cap), a jewelry manufacturer announced its Q3 2021 results:

Sales of $9.4 million vs $6.5 million in the prior year and ahead of analyst estimates of $7.9 million
EPS of $0.03 vs a loss of $0.03 in the prior year and ahead of analyst estimates of $0.01

"We continue to gain traction in building and elevating the Charles & Colvard brand and our branded product lines. This has led to the significant growth in revenues, net income and cash flow... Additionally, we were encouraged by the balanced revenue growth across our Online Channels segment and Traditional segment, which is a testament to the growing awareness of and demand for Forever One™ moissanite and Caydia™ lab grown diamonds.

We are laser-focused on carrying this positive trajectory forward and generating healthy and sustainable growth. Our strategic actions are being recognized by our customers and shareholders, and we plan to continue to execute on our initiatives," concluded Mr. O'Connell.

While this was a solid quarter for the company with strong growth and beats on top and bottom line analyst estimates, shares were down slightly pre-market as some investors may not have been aware of the seasonality associated with the December quarter, which is typically the strongest quarter for the company.

There is one huge development in the industry that we would like to point out. CTHR has been implementing a plan to heavily focus on manufacturing and marketing lab-grown diamonds. A few days ago, Pandora made an announcement that, moving forward, it will only be marketing lab-grown diamonds. This is significant in that Pandora is the world's biggest jeweler and validates the strategy of CTHR's new leadership.

Call to Action

Tue, 04 May 2021 18:16:06 GMT

Adding CTHR to Our Select Long Disclosures

We are adding Charles & Colvard Ltd. (NASDAQ:CTHR) ($3.66; $106.8M market cap), a jewelry manufacturer, to our Select Long Disclosures based on a recent interview Maj had with new CEO Don O’Connell who we hope will accept our invitation to present to the GeoInvesting community.

On June 11, 2019 we initiated a swing trade in CTHR as shares pulled back on an 20% dilutive offering of 6.2 million shares priced at $1.60. Prior to the offering, shares were hitting new highs, hitting $2.48 several days before the offering was announced. We felt the offering price would offer support and shares could rebound a bit on the heels of a multi-year business transformation that appears to have reached an inflection. The swing trade did not play out and we closed it out at a minor loss a month later.

Q2 2021 was a breakout quarter for the company, reporting:

Sales of $12.1 million vs $10.7 million in the prior year
EPS of $0.09 vs $0.03

Shares were trading in the low $2 range prior to those results and have since hit a new 52-wk high of $3.66 in yesterday’s trading session. The stock has seen consistent insider buys, most recently from director Ollin Sykes, who has made several purchases over the last few months.

We want to thank GeoInvesting member Tim W. (@Vegastrader66) for bringing the idea back on our radar. The company is slated to report its Q3 2021 results on Thursday after the close.

Research

Wed, 24 Jul 2019 15:16:49 GMT

Closed Swing Trade In CTHR

On June 11, 2019 we initiated a swing trade in Charles & Colvard Ltd. (NASDAQ:CTHR) ($1.52; $43.5M market cap), a jewelry manufacturer as shares pulled back on an 20% dilutive offering of 6.2 million shares priced at $1.60. Prior to the offering, shares were hitting new highs, hitting $2.48 several days before the offering was announced. We felt the offering price would offer support and shares could rebound a bit on the heels of a multi-year business transformation that appears to have reached an inflection

After a little over a month, the story didn't play out as we thought and we believe estimates just don't justify holding shares (2019 EPS est is $0.10; 2020 EPS est is $0.11).

On the positive side, we like the CEO a lot. She has done a great job turning the company around, helping the company establish a leading market position for some of its brands. We want to see if the historical high returns on investment from the company's marketing spend can be maintained as the company puts the money it raised to work to get ready for increased competition that is occurring in its markets. But for now, we have closed out our swing trade position.

Research

Tue, 11 Jun 2019 15:30:42 GMT

Establishing A Swing Trade Position In CTHR

In our May 10, 2019 email, we stated Charles & Colvard Ltd. (NASDAQ:CTHR) ($1.62; $35.2M market cap), a jewelry manufacturer, was in the midst of a multi-year business transformation that was gaining steam. Shares of CTHR began a sharp rise on the heels of strong Q3 2019 financials reported on April 25, 2019. Shares climbed from $1.20 to a recent high of $2.48, but have since retraced sharply after the company announced an offering of 6.2 million shares, priced at $1.60.

We are taking a small long position as a swing trade, as we feel the $1.60 offering could add a nice support level from the recent pullback.