David'sTea (NASDAQ:DTEA)

Transformation to a mostly e-commerce company. However, they've kept their most profitable retail stores. On June 11, 2021, courts will decide on their liabilities to the landlords for lease agreements (breaking the leases). However, all signs are pointing toward a fair and somewhat low liability amount. Hence, this stock should be valued $4-$6 in mid-2021, and above that in the quarters to come. Their online "Tea Tasting Club" is a hit, and gets fantastic reviews. I see this as a great loyalty program that will reap recurring revenues, on top of their normal ecommerce sales. BUY.

David's Tea is trendy and profitable, but the business model is easily imitated. There is nothing stopping the giant coffee chains from featuring a tea section in their coffee shops, or opening up tea stores of their own. Indeed, Starbucks bought Teavana and has plans to exploit this growing sector.

Although the demand for tea continues to grow ,the tea business will be saturated with competition. No one needs more than two Tea stores per mall.

Expecting shares to underperform over 3 to 5 years, eventually the company will be bought out.