Stran & Company stock (NASDAQ:STRN) is a recent IPO that released on November 9th. Around 4.5 million shares went on offer at $4.15 and 14.5 million shares remain outstanding. The price hit a high of $6.08 today, up 46% from the initial price.

Stran & Company

Stran provides organisations with physical branded merchandise and the marketing vehicles by which to distribute that merchandise. The results provide their clientele with amplified brand exposure, streamlined operational efficiency and tangible cost savings.

While companies still market their products and services to consumers across the world, the preferred platform has quickly transitioned from newspapers, radio and television spots to the internet and social media. According to data compiled by Statista.com, “the internet was considered the most important medium for advertisers, accounting for 51% of total media ad spend in 2020.”

An extract from their website read, “Stran is a top 50 distributor of promotional products and branded merchandise, out of 30,000+ in the US, with more than 27 years of experience. Our size ensures strength in buying power and special service offerings that others cannot provide, yet we remain more flexible and unique in creating solutions that meet each client’s specific needs. We’re able to pivot based on market conditions to meet our customers where they are in solving their biggest promotional marketing challenges.”

The company has over 30 Fortune 500 companies in their client base.

Potential

STRN has grown every year over its 27 year existence. In 2020, they achieved over $37M in revenue. Investors have shown early interest as high volume has poured in over the first few days. The low float gives this a high potential, as the stock will move easier if demand rise. How may demand rise? Well, the companies quiet period ends December 20th. We saw a recent IPO, DatChat, see a great run in its initial weeks on the market, helped by the end of the quiet period when they could proceed with press releases.

All in all, I think STRN has great potential to see a strong move by the end of the year. We will be keeping an eye on it to see what develops. With a current market cap of roughly $60M, we think this is undervalued.

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