April 2nd
Greetings Readers,
Capstone Holding Corp. (Nasdaq: CAPS) jumps green early and tops my watchlist early Wednesday.
Here's two things to consider quickly:
#1. This is a low float idea with Finviz reporting 3.41Mn shares in its float. That means volatility potential could be heightened daily.
#2. Strong revenue news dropped yesterday. Check it out: Capstone Targets $100Mn Run Rate Increases Q4 Revenue and Executes Strategic Brand Expansion
With visibility on this company potentially growing significantly after a recent Nasdaq listing, time may be running short to get this under-the-radar profile on your radar.
Take a quick moment to review my initial report below and consider pulling up (Nasdaq: CAPS) before it's too late.
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April Fools' Day? Well, nothing was fooling my latest breakout idea.
A Nasdaq profile flying under Wall Street's radar, this quick-hitter erupted after the opening bell.
From a previous night's after-hours close of $.5128, it blasted vertically up to $.6884 on Tuesday.
When the dust settled, that Nasdaq idea had shown the market what's up to the tune of approx. 34% short term.
Meanwhile, not one to sit around on my hands, I've uncovered a new breakout idea to consider immediately.
Soak this in...
First off, this is a low float idea.
With fewer than 4Mn shares in its float, volatility potential could be extremely heightened.
Secondly, this profile has only recently started trading on the Nasdaq Capital Market.
That means they could be seen to have enhanced credibility, broader visibility, and access to more capital and liquidity.
But most importantly could be Tuesday's massive announcement...
This company just announced it's targeting an operating company revenue run rate by the end of 2025 of $100Mn after announcing revenue growth of 8% in Q4 year-over year.
Consider this newly minted Nasdaq idea for your radar immediately:
*Capstone Holding Corp. (Nasdaq: CAPS)*
Capstone Holding Corp. is a building products distribution company that has successfully grown its business organically and through well-timed acquisitions.
They intend to use the distribution backbone of their operating subsidiary, which currently services 31 US states, to provide a value-added platform to make acquisitions.
A key differentiator of Capstone's strategy is that it maintains over half of its revenue from brands it owns or controls.
And based on several potential catalysts, CAPS has found its way to the top of my watchlist. Check them out:
No. 1 - A Low Float Could Create An Environment For Heightened Volatility.
No. 2 - Huge News Tuesday Points To An Ambitious Company With A Major Revenue Target.
No. 3 - A Recent Uplisting To The Nasdaq CM Could Provide Significantly More Visibility For The Company.
No. 4 - Thin Brick Veneer Product Group Grows Over 30% At Company's Instone Business.
But more on those in a second...
Capstone's (Nasdaq: CAPS) Key Milestones For 2025
$100Mn Revenue, $10Mn Adjusted EBITDA
- By end of the year, targeting run-rate Revenue of $100Mn and Adjusted Operating Income / EBITDA of $10Mn for operating subsidiaries
- Capstone anticipates announcing a series of acquisitions throughout the year to accelerate their growth and achieve their growth objectives
Targets
- Focused on Tuck-In Acquisitions, Sister Companies, and Platform Acquisitions
- Current environment offers favorable purchase multiples and structures Acquisition multiples of 4-6x EBITDA 20% - 45% consideration non-cash
- Current focus on strategic Tuck-In Acquisitions to accelerate earnings growth
Acquisition Strategy
THREE-PRONGED ACQUISITION STRATEGY
Tuck In Acquisitions
- Grow Instone's presence beyond the Northeast and Midwest into the South, Southeast, and Mountain States.
Sister Companies
- In-vest in businesses with strong product or channel synergies that operate independently but align with existing operations.
Platform Acquisitions
- Acquire companies with strong fundamentals and growth potential in the broader building products and services sector.
Outlook For 2025 And Beyond
The U.S. stone and masonry industry is projected to sustain its growth trajectory, driven by robust demand in residential and commercial construction alongside increasing adoption of sustainable and green building practices.
Forecasts indicate a compound annual growth rate (CAGR) of 4-5% through 2025.
Companies that embrace evolving market dynamics, in-vest in technology, and offer diverse, high-quality products are expected to achieve long-term success.
Competitive Strengths
Capstone distinguishes itself in the market through several key competitive advantages:
#1. Extensive Product Offering
Capstone provides one of the industry's most comprehensive selections of stone products, with over 1,980 SKUs encompassing both manufactured and natural stone options.
This diverse portfolio enables the company to address the needs of a wide customer base across various construction applications.
#2. Optimized Distribution Network
The company operates four strategically located distribution centers in Massachusetts, New Jersey, Ohio, and Illinois, serving 31 states that collectively account for approximately 40% of American households.
These facilities enhance inventory management and delivery efficiency, ensuring timely access to products for customers.
#3. Strong Customer Relationships
Capstone has established enduring partnerships with over 400 active customers, including prominent names in the construction industry.
Its ability to serve as a one-stop shop for stone and masonry products, combined with a commitment to exceptional service, solidifies its position as a trusted partner.
#4. Operational Excellence
The company upholds high standards of operational efficiency through advanced distribution facilities and a skilled professional team.
#5. Experienced Management Team
Capstone's leadership team possesses extensive expertise in the stone and masonry industry, with a proven record of driving growth.
They are supported by a dedicated group of managers and employees focused on continuous improvement and customer satisfaction.
Grab Sources And More: CAPS Presentation. CAPS Form 10-K.
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And mentioned above, (Nasdaq: CAPS) has multiple potential catalysts to consider immediately. Take a look:
No. 1 CAPS Potential Catalyst - A Low Float Could Create An Environment For Heightened Volatility.
According to info from the Finviz website, CAPS has a fairly small float.
In fact, the website reports this profile to have approximately 3.41Mn shares in its float.
Why is that important? It's important on one crucial level. Volatility potential.
If the company provides more positive company news in the first half of 2025, could it provide a near term spark?
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No. 2 CAPS Potential Catalyst - Huge News Tuesday Points To An Ambitious Company With A Major Revenue Target.
Capstone Targets $100Mn Run Rate Increases Q4 Revenue and Executes Strategic Brand Expansion
Revenue Up over 8% in Q4 Year-Over-Year
Toro Stone Launched in 6 New States
ALSIP, ILLINOIS / ACCESS Newswire / April 1, 2025 / Capstone Holding Corp. (the "Company" or "Capstone"), (NASDAQ:CAPS), a national building products distribution company that has successfully grown its business organically and through well-timed acquisitions, announced financial results for the full year ended December 31, 2024.
Matt Lipman, CEO of Capstone, said,
"I'm proud of the team's execution and focus on growth in the second half of the year. As the parent company, our mission is clear: double the size of the business through targeted, strategic acquisitions - and we believe we're well on our way. We remain focused on scaling efficiently."
The Company is targeting an operating company revenue run rate by the end of 2025 of $100Mn and Adjusted Instone EBITDA of at least $10Mn.
Kevin Grotke, CEO of TotalStone, LLC (dba "Instone"), a wholly owned operating subsidiary of Capstone and its primary business activity, said,
"I'm incredibly proud of our team's execution and their sharp focus on customer acquisition and top-line growth. Their efforts have laid a strong foundation for continued success, and I'm excited to see the momentum carry into 2025 as we work toward achieving our ambitious goals - particularly the growth of our proprietary brands."
...
Read the full article here.
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No. 3 CAPS Potential Catalyst - A Recent Uplisting To The Nasdaq CM Could Provide Significantly More Visibility For The Company.
Capstone Holding Corp. Announces Pricing of Follow-On Public Offering and Uplisting of its Shares on Nasdaq Capital Market
ALSIP, IL / ACCESS Newswire / March 5, 2025 / Capstone Holding Corp. (the "Company" or "Capstone"), ..., today announced the pricing of its Follow-on Public Offering (the "Offering") of 1,250,000 shares of common st-ock (the "Common Shares") at a public offering price of $4.00 per share for total gross proceeds of $5Mn before deducting underwriting discounts and offering expenses. The Common Shares have been approved for listing and are expected to begin trading on the Nasdaq Capital Market on March 6, 2025 under the ticker symbol "CAPS". The Offering is expected to close on or about March 7, 2025, subject to the satisfaction of customary closing conditions.
...
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No. 4 CAPS Potential Catalyst - Thin Brick Veneer Product Group Grows Over 30% At Company's Instone Business.
Capstone Sees 30%+ Growth in Thin Brick Veneer, Rolls Out New Products at its Instone Business ALSIP, IL / ACCESS Newswire / March 18, 2025 / Capstone Holding Corp (NASDAQ:CAPS), ...,
has seen the thin brick veneer product group at its Instone business grow over 30% relative to last year. To respond to customer demand, under the Toro Stone brand it is proud to announce the launch of its latest product group, 'Linear Brick.'
Drawing inspiration from the timeless bricks that grace Italy's historic structures, Linear Brick embodies elegance and enduring style. It is offered in three distinct palettes.
Over the past five years,
the thin brick market has experienced notable growth, driven by its aesthetic appeal, durability, and cost-effectiveness. The adhered veneer segment has emerged as the most rapidly expanding type, primarily because of its ease of installation and cost-effectiveness.
"
At Toro Stone, we are dedicated to blending traditional craftsmanship with modern design,"
said Kevin Grotke, CEO of the Instone operating business. "
The introduction of Linear Brick reflects our passion for creating products that not only meet but exceed the expectations of our customers, providing them with versatile and aesthetically pleasing options for their projects."
Matt Lipman CEO of Capstone Holding added, "
Kevin and his team have been great at identifying market trends and using one of their key brands, "Toro Stone" to design attractive and innovative products that will continue to drive exceptional growth in this product category."
...
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(Nasdaq: CAPS) Recap - 4 Potential Catalysts Could Deliver Breakout Buzz
No. 1 - A Low Float Could Create An Environment For Heightened Volatility.
No. 2 - Huge News Tuesday Points To An Ambitious Company With A Major Revenue Target.
No. 3 - A Recent Uplisting To The Nasdaq CM Could Provide Significantly More Visibility For The Company.
No. 4 - Thin Brick Veneer Product Group Grows Over 30% At Company's Instone Business.
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Coverage is officially initiated on Capstone Holding Corp. (Nasdaq: CAPS).
When updates pop up, I'll get them out quickly. Talk soon.
Sincerely,
Kai Parker
StockWireNews
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