Interview: Leatt Corporation With DeepSailCapital (Ticker: LEAT)
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Show Notes
Today we released an episode with first-time guest DeepSailCapital to discuss Leatt Corporation, a provider of safety equipment for the extreme sports market.
How’d you first come across Leatt? Why did the stock go down ~98% after its IPO? What’s changed?
What does Leatt do?
What are the unit economics for sports safety gear? How does Leatt turn a profit?
Thoughts on the sports gear and helmet industry? What are its growth prospects? Who are the main competitors?
What do you think of their brand in the sports gear world? Does it give them a moat?
Who is running Leatt today? Should shareholders trust this management team?
What does the valuation look like today? What needs to happen for Leatt to meet the returns you’re looking for?
Revenue and gross profit inflected higher around 2020, but not free cash flow. Why?
Premortem: How could an investment in Leatt go poorly?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.