Since hitting 52 cents on January 10, shares of Peekaboo Beans Inc. (TSX-V:BEAN) have charged ahead for six straight days, hitting their highest level since the children's apparel maker came public on September 29, 2016. On the stock's second trading day, its all-time high was set at $1.20.
In today's trading, shares touched levels not seen since back at the genesis of the public company, catalyzed by a "stellar" (their word, not ours) corporate update. The Vancouver-based company said it is making market penetration in the U.S. after an official launch late in September, with nearly one-quarter of January's revenue coming from the States. Previously Peekaboo, who operates with a direct-sales model and a team of thousands of salespeople called Stylists, was only generating revenue in Canada.
Management said it is benefiting from well-known brick-and-mortar locations allowing pop-up shops and its newly launched $49.00 "Petite Boutique in a Box," a sales plan that is making the business opportunity more accessible for women to join. In short, people looking to run their own business become a Stylist for Peekaboo, receive training and get product for their own pop-up shop for less than $50. Along with other perks, Stylists earn 15-35% of what they sell.
As the nearly 100%-female company expands in Canada and gains traction in the U.S., Peekaboo is looking to go international too. Today's news included a brief report that a reputable third-party partner is negotiating entrance into the Japanese markets.
Last year, CEO Traci Costa said the company would reach profitability this year. Investors seem to be rallying around that outlook, U.S. market reach and potential entrance in the Asian markets. After closing at 74 cents on Wednesday, shares printed as high as 99 cents, but have slipped back to 79 cents as the day winds to a close, representing a gain of 6.8% on the day.
