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Proprietary Data Insights Financial Pros’ Top Personal Care Stock Searches in the Last Month
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Safety Shot isn’t worth the risk |
24 hours after the first alcoholic drink was invented, the hangover was discovered. Since then, humanity has searched in vain for the ‘cure’ to hangovers. Sure, a fatty breakfast and tons of water help absorb and dilute the alcohol. But they do nothing to get rid of it. So when Safety Shot (SHOT) announced they had: “[patented the first] beverage on Earth that helps people feel better faster by reducing blood alcohol content”… …Everyone took notice. Retail investors looked at the stock some +26,000 in the past two weeks, up from zero, as shares jumped 300% during the same period. Unfortunately, an awesome idea and fabulous price action don’t make this an investible company. Here’s why. Safety Shot’s Business Yes, Safety Shot invented a drink that supposedly reduces blood alcohol content in the body. However… the FDA hasn’t validated these claims.
Here’s the thing… Anyone who’s had a hangover knows you don’t necessarily have alcohol in your system the day after. That’s why some folks will drink more the following day to reduce their hangover (not something we recommend). So, you’d have to drink it while you’re still drinking alcohol or immediately after. Setting aside those problems, the company’s website is shotty (pun intended). They list the usual stuff but then talk about an investor presentation that’s nowhere to be found. Kind of sketchy. Their flagship product was part of an acquisition in August 2023 for roughly $2.6 million, with patents that expire in 12 years. Still, the product sold out on Amazon a day after being released early. And lastly, Safety Shot also retained a law firm to investigate short seller activities, which often causes bears to drop their bets against the company. Financials
Source: Stock Analysis Safety Shot owns SRM Entertainment, a theme park product company that accounts for nearly all of the company’s sales and gross profits. While Safety Shot doesn’t have any debt, its share dilution is atrocious, going from 24.0 million shares outstanding in 2021 to 41.4 million in their latest filing. With the warrants not yet exercised, that amount could increase to 61.4 million. Safety Shot burns cash every quarter, which increased to $2.9 million in Q3. With $7.5 million in cash on hand, they’ll likely need to raise more money Valuation
Source: Seeking Alpha While we typically provide analysis in these sections, Safety Shot hasn’t put out sales numbers for its new product. So, there’s nothing to use as a reference. Therefore, we’re showing competitors in the personal care space so you have an idea of what metrics could be used to evaluate the company down the road. Growth
Source: Seeking Alpha Profitability
Source: Seeking Alpha Our Opinion 0/10 Despite the hype, we don’t look at Safety Shot as an investible company. The majority of these penny stock plays fade into oblivion. This will likely follow suit. We’re never a fan of buying shares of a company before its sales start unless you’re in the private equity space. |
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