$DTEAF $TNA $RUT $IWM $XRT Another fund enters the growing tea industry. With so many deals in the tea industry over the last years, profitable, debt-free and insanely cheap DAVIDsTEA $DTEAF will be acquired sooner or later.
Specifically, Bain Capital just announced that it acquires global bubble tea chain Gong cha. Gong cha, which offers a wide range of tea and fruit-based beverages, operates more than 2,200 stores worldwide, including in the U.S. and Central America: https://www.baincapital.com/news/bain-capital-acquire-gong-cha-one-worlds-fastest-growing-tea-brands-ta-associates
$DTEAF Each full warrant will entitle its holder to purchase one additional common share of DAVIDsTEA at a price of CAD$1.25 for one year from the closing date of the Private Placement and at a price of CAD$1.50 for one year thereafter
$DTEAF bought in for first time since the Canadian exchange debacle 3 years ago. Eyeballed at .12 a year and a half ago and didn’t enter. Have followed since maybe 2018.
$DTEAF DavidsTea (DTEAF): Substantial Upside After Impressive Close To FY2025: https://seekingalpha.com/article/4896446-davidstea-stock-substantial-upside-after-impressive-close-to-fy2025-buy
The author is very conservative and heavily discounts $DTEAF compared to all the other beverage stocks, so it sets a PT of CAD$2.70 per share for DTEA or $2 per share for $DTEAF
Despite his overly conservative approach, his PT is almost 200% higher the current price levels.
Meanwhile, the company is working on its wholesale expansion, so deals with $WMT $KR $COST $TGT or other grocery chains are very likely.
$DTEAF $REED $ZVIA $LSF $FIZZ Beverage industry.
Now you know why the Pembroke Heritage fund invested in dirt-cheap $DTEAF a few months ago and bought at CAD$0.90 per share.
Importantly, the Pembroke Heritage fund, a large Canadian fund with a proven track record that was established in 1968, also owns warrants at CAD$1.25 and CAD$1.50 per share, so it plans to increase its investment in $DTEAF : https://www.globenewswire.com/news-release/2025/11/12/3186062/0/en/DAVIDsTEA-Announces-3-0-Million-Private-Placement-and-2-7-Million-Revenue-Linked-Financing.html
$DTEAF Debt-free, cash-rich and dirt-cheap DAVIDsTEA $DTEAF will also grow its business in 2026, thanks to the 4 new stores (Oshawa, Missssauga, Edmonton, Vancouver) PLUS the 1 store in Laurier that just opened in December 2025 and will contribute to the company's top and bottom lines for the ENTIRE 2026:
Its Enterprise Value-to-adj. EBITDA now is only 1 times, so $DTEAF will yield more than 200% in the next months, which is the case for all the companies with successful turnarounds.
$DTEAF also is a takeover target for a large beverage company which will pay a nice premium such as $KO $PEP $KDP $COCO OTLY, CELH, etc. : https://www.newsfilecorp.com/release/294800/DAVIDsTEA-Returns-to-Profitability-in-Fiscal-2025-Reports-Strong-Fourth-Quarter-Results
$DTEAF Debt-free, cash-rich DAVIDsTEA $DTEAF announces great results including the return to strong profitability.
Revenue of CAD$61 million and adj. EBITDA is CAD$7.6 million, but Enterprise Value now is only CAD$8 million!
So its EV-to-adj. EBITDA multiple now is only 1 times!!!
For comparison, the other beverage stocks trade more than 5 times their adj. EBITDA!
So DTEAF will outperform this year, same like other companies that had a successful turnaround such as Tilly's $TLYS etc. while also being a takeover target for large beverage companies such as $MNST $STZ $OTLY
Results: https://www.newsfilecorp.com/release/294800/DAVIDsTEA-Returns-to-Profitability-in-Fiscal-2025-Reports-Strong-Fourth-Quarter-Results
$DTEAF https://cdn.shopify.com/s/files/1/0687/3785/9824/files/Quarterly_Earnings_Presentation_-_Q4_2025_V3.0_4.pdf?v=1777463173
We'll see how the market reacts, but they are going from net income of -3.4m to +2.9m in FY25. They should be profitable moving forward, which is GREAT news. Just need to reverse the sales trend. Double down on US sales growth, and maybe open a store or two in big US cities.
$DTEAF David's Tea announces they'll be releasing their fiscal year results tomorrow, and their CAD price drops 10%. It's almost a full month ahead of when they announced their earnings last year. While I have no idea how their YoY performance is from a sales perspective, their ability to close out the fiscal year got a month better than last year, so that's got to save some money, right? Not feeling as a bullish as I have the last few years, but still holding some shares hoping for more growth!
