There’s A Single New Jersey Deli Doing $35,000 In Sales Valued At $100 Million In The Stock Market

There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market

Hedge fund manager David Einhorn warned of dangers
for retail investors that he sees in the market,
and one of his main examples was a tiny New Jersey deli
with a market capitalization of more than $100 million.
© Provided by CNBC Your Hometown Deli in Paulsboro, N.J.
The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings.

"Someone pointed us to Hometown International (HWIN),
which owns a single deli in rural New Jersey ...

HWIN reached a market cap of $113 million on February 8.

The largest shareholder is also the CEO/CFO/Treasurer
and a Director, who also happens to be the wrestling coach
of the high school next door to the deli.

The pastrami must be amazing," Einhorn said
in a letter to clients published Thursday.

Hometown, which appears to have begun trading in 2019,
according to FactSet, has shares that trade over the counter
and rarely has more than a few hundred shares change hands per day.

Often, there are no trades logged in an entire trading day.

Still, the company's market cap is just over $100 million,
according to FactSet.

Hometown did not immediately return a request
seeking comment made to the phone number listed
in the company's securities filings.

A manager was not available to comment at the deli's phone number.

According to the company's latest 10-K filing, the company's single location
was closed from March 23 to September 8 of last year
because of the coronavirus pandemic.

During that time, the company's stock price rose to $9.25 per share
from $3.25 per share. It last traded at just under $14 per share.

The company sold 2.5 million shares last year
and has about 60 total shareholders, according a filing.

Einhorn takes aim at Chamath Palihapitiya, Elon Musk for role in GME squeeze

• Hometown reported more than $600,000 in expenses last year,
• up from about $154,000 in 2019.
• The company also reported a net cash gain of $2.2 million from financing activities, such as selling stock, in 2020.

Einhorn's highlighting of Hometown comes as politicians, regulators
and high-profile investors have publicly fretted about the boom
in certain types of stocks over the past year.

As a new wave of retail investors joined the market in recent months,
special purpose acquisition companies have launched at a record pace
and some stocks, like GameStop and Discovery,
have seen wild swings after being bid up by traders on Reddit or hedge funds.

The over-the-counter stock market, often referred to as pink sheets
and penny stocks, have historically been a risky place for investors.

Shares of penny stocks have also soared in recent months.

There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market (msn.com)

https://www.msn.com/en-ca/money/com...in-the-stock-market/ar-BB1fHd7W?ocid=msedgntp