Opinions
Jim Cramer - Mad Money
Lineage
LINE-Q
WEAK BUY
Jul 29, 2024
N/A
Stock price when the opinion was issued
REAL ESTATE
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It has 480 locations across North America, Europe and Asia. They acquire small businesses in a very fragmented industry (cold storage) and quickly became the dominant player. They command scale and are riding the wave of online food sales. Also, the younger consumer wants healthy food, which cold storage protects. They've invested heavily in cloud and tech to operate more efficiently. Revenues jumped from $3.7 billion in 2021 to $5.34 billion in 2023, but their growth ground to a halt to start this year. Puzzling. Revenue was -0.4% YOY. Also, all these acquisitions have left them with a heavy debt. Pays an okay 2% dividend yield. It's the largest IPO so far this year, but is using most of the capital to pay down debt. Overall, he's modestly positive but wants to know where future growth is.