Argus Research Initiates Equity Report Coverage on Boomer Holdings Inc. (OTCQB: BOMH)

New York, New York, UNITED STATES


NEW YORK, Feb. 24, 2021 (GLOBE NEWSWIRE) -- Argus Research, an independent investment research firm, has launched Equity Report coverage on Boomer Holdings, Inc. (OTCQB: BOMH)

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Excerpts & Highlights from the Report as conveyed by Argus Analyst Steve Silver, follow:

BUSINESS DESCRIPTION:
Founded in 2019, Boomer Holdings, through the operating company Boomer Naturals and with divisions that include Boomer E-Commerce, Boomer Wholesale, and Boomer Vietnam, provides solutions aimed at improving people’s well-being and quality of life. The company has established a strong sales distribution network across multiple channels. The company’s products are available through its own website as well as through a retail store in Las Vegas, and in CVS stores across the United States. Boomer has also established a wholesale channel to sell its products through venues such as resorts, golf shops, chiropractic offices, specialty stores, and nail salons.

In January 2020, Boomer entered into a trademark license and royalty agreement with Tommy Bahama Group to produce a co-branded line of wellness products sold at Tommy Bahama stores and online. However, the COVID-19 pandemic caused Tommy Bahama to temporarily close stores and delay e-commerce marketing initiatives.

This disruption to the business due to the COVID-19 pandemic prompted Boomer to diversify its product offerings. By leveraging relationships in Vietnam, Boomer entered into an exclusive North American distribution agreement with a South Vietnamese manufacturer of silver-infused face covers. The agreement enabled Boomer to enter the market for high-quality face masks, which were seeing surging demand due to the pandemic, and aligned well with its focus on health and wellness. It also gave Boomer access to a large inventory that enabled an immediate rollout of a broad product line.

COMPETITIVE ADVANTAGE:
In our view, Boomer Holdings has established a robust product portfolio and commercial infrastructure in a very short time. It has also aggressively invested in marketing in an effort to build its brand and drive consumer traffic to its website, as well as to the sites of its retail partners. In addition, the company has worked to educate consumers about the benefits of the silver-infused technology embedded in the protective mask line, which should help it to launch additional products utilizing this technology.

Boomer has recently expanded its relationships with Vietnamese manufacturers by introducing a line of silver-infused apparel, bedding, bath, and kitchen products. In addition, it has announced plans to import coffee from Vietnam — the second-largest coffee producer in the world — to the United States. We believe that these new product categories will more than offset eventual declines in face mask revenue on the other side of the pandemic, and will account for most of the company’s future e-commerce sales.
To meet the expected demand for products through its e-commerce channel and facilitate the diversification of its product line, Boomer has tripled its inventory and warehousing capacity since April 2020 – and has the financial resources to expand further. We note that the company has also invested in a full array of e-commerce capabilities, including procurement, marketing, logistics, shipping, web development, and customer service.

ANALYST COMMENTARY   ̶   EARNINGS:
In December 2020, Boomer Holdings reported results for the quarter ended October 31, 2020. Revenue rose to $28.8 million, up from just $174,000 a year earlier, and net income rose to $7.4 million, compared to a loss in the prior-year quarter. The 1Q gross margin improved to 68% from 51%, helped by sales of PPE products. Over the next 3-5 years, we see potential for Boomer to grow revenues in excess of 20% annually, and to expand gross margin beyond 70%, as it works to maintain a healthy sales mix between the direct-to-consumer channel — featuring many products with margins in the 80% range — and the wholesale channel.

About Boomer Holdings, Inc. (OTCQB: BOMH) https://boomernaturals.com
Founded in 2019, Boomer Holdings, through the operating company Boomer Naturals and with divisions that include Boomer E-Commerce, Boomer Wholesale, and Boomer Vietnam, provides solutions aimed at improving people’s well-being and quality of life. The company has established a strong sales distribution network across multiple channels. The company’s products are available through its own website as well as through a retail store in Las Vegas, and in CVS stores across the United States. Boomer has also established a wholesale channel to sell its products through venues such as resorts, golf shops, chiropractic offices, specialty stores, and nail salons. Boomer Holdings, Inc. is headquartered in Las Vegas, Nevada.

For more information re: BOMH please contact:

Amberely Quaintance 
amberly@boomernaturals.com
702-419-3149

About Argus Research Corp. Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934) ̶ providing fundamental and quantitative research coverage on more than 1,600 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and pre-IPO research. In addition, Argus now provides sponsored research solutions for small & mid-cap companies seeking coverage. Our Institutional Asset Management, Bank Trust, sell-side advisor and self-directed investor clients value Argus’s proprietary equity research methodology, analysis and commentary.  Argus’s Equity Research & earnings estimates are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.
    
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dstone@argusresearch.com    

Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research’s compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.