OWLT Baby products.

Need to unload some heavy bags?

Still no movement on the FDA approvals, right?

Hopefully the Dream Sock and international customer base has helped drive sales. Not overly confident.


ETA: OWLT on sale after hours..

Don’t own the stock but own the product for my kid. It’s a legit product and has been beneficial to ease some fears as a parent. Also, great to see how she slept through the night. I can see this company getting bought out if they get their shite together.

Smells like a stinky reverse split to maintain their NYSE status

Ultimate bag holder here. Amazon is still in, so I'm still in.

I swung this from $1.70 to $4.70 last year and now I'm back in with double the position size but currently swimming under water with a 0.80 cost basis.

The two big concerns right now are the current lockup expiration selloff, and the $1 bid price listing requirement.

The CEO sent me the following, via email, back at the end of December:

quote:

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"In regards to the lockup - 90% of the shares at owlet are under the lock up right now. We're still discussing the best way to handle the lockup expiration as a board, I can follow up when we have more information but definitely understand your concern."

"Expiration is mid January. I can't comment yet on the stock split. We have some time to see how the next few months go before we need to decide"

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I get the feeling FDA approvals will happen sooner rather than later, hence the "we have some time" comment. But I'm not even concerned about this potential r/s though. They are projecting breakeven adjusted EBITDA, with about $80m in revenue next year, WITHOUT the potential positive effects of a potential FDA approval.

If they don't get FDA approval, then I will probably take my L and move on. That said, they have been working closely with the FDA for so long now that I just don't see them denying this type of product. I use it and the Cam 2 every single night with my daughter. The peace of mind alone make it worth every penny.

The smart crib and sound machine should be the next products they release, hopefully next year. And international growth is steadily climbing. They only have a .09% market penetration in the US alone. They have tons of room for growth, in a category they basically invented.

My thinking on this one is great product, bad investment. We used the smart sock with both of our kids, and it was a tremendous comfort for the first year. However, unless you have multiple children under 1 (a very small percentage of the population) this is a one-time purchase, and not an inexpensive one. Really view this as an upper middle class baby product.

The rest of the products (monitors, swaddles, etc.) have a ton of competition, and I think it would be costly to gain market share.

The future product opportunities seem like a cash burn, and I really question the demand especially for clinical and toddler products.

quote:

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They are projecting breakeven adjusted EBITDA, with about $80m in revenue next year, WITHOUT the potential positive effects of a potential FDA approval.

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I get that. But the market has a $45M market cap on it. In my mind, market is saying BK. Whether that’s the result or not we shall see. There e lies the huge opportunity or lose it all end game.

Halo just launched the SleepSure band in Jan 2023...which is basically the same functionality that the Smart Sock was delivering?

OWLT needs cash though, no? Whether through new equity issues or… I’m not sure they can take more debt on.

7M shares traded after the close on Friday, up 50%. I wonder if it’s a new private investment that will bankroll them.. or someone knows something about FDA approval.

If BK isn’t in Owlet’s near future it could make up some ground quickly.