Topps: Be Careful Here
Topps reported Q1 sales that surged 55% to $166.6 million. The sports card market has seen a huge correction since the SPAC deal was announced in April. The stock isn't exactly expensive with a market cap of $1.3 billion, but the company faces a tough road over the next year as card demand slumps. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio. Learn More » Since Topps agreed to a deal with SPAC Mudrick Capital Acquisition Corp. II ( MUDS ), the market has turned negative on their primary market and this vehicle for going public. Both SPACs and sports trading cards have cooled off in the last couple of months altering the near-term attractiveness of the stock. My long-term investment thesis remains bullish on Topps as a company, but the sports card market weakness is likely to push this stock lower heading into the merger close. Read the full article on Seeking Alpha. D...