[adrotate group="2"]

WARPAINT WOBBLES: A STOCK ON THE EDGE!

Investors SHOCKED as Warpaint’s Shares Take a nosedive! Is a Turnaround Possible?

I purchased shares in Warpaint (LSE: W7L), the AIM-listed beauty stock everyone’s buzzing about. With enormous long-term potential, I jumped on board, hoping for a thrilling ride. But hold onto your mascara—this rollercoaster has more dips than a makeup artist’s palette!

Warpaint, the mogul behind the trendy W7 and Technic brands, is on a MISSION: “Ensure everyone can grab high-quality cosmetics without breaking the bank!” You’ll spot their products in Boots, across the US, and in stores throughout the Netherlands and the Philippines. But don’t let the glitz fool you; this stock’s been wilder than a Black Friday sale!

Last year, I added Warpaint to my self-invested personal pension (SIPP) when it was riding high—UP A WHOPPING 360% over five years! But the past 12 months? Down, down, DOWN by 6%! What gives?

WARPAINT IS FIGHTING BACK!

Hold on, folks! This isn’t just any small fry with a market cap of about £383 million. When I made this daring purchase, I was chasing balance and excitement in my portfolio. Initially, it seemed I had nailed it, reaping a sweet 50% gain!

But on September 17, 2024, everything changed. Warpaint announced a record first half, with earnings exploding by 66% to £12 million and pre-tax profit soaring by 75% to £10.9 million. All systems GO! Or so I thought…

VOLATILE SHARE PRICE LEAVES INVESTORS REELING!

In a jaw-dropping twist, the shares fell like a stack of poorly applied blush on that very day! Even after analysts at Berenberg upgraded their target price from 580p to a jaw-dropping 680p, investors kept hitting the panic button. By February 6, 2025, Warpaint’s projections of a 33% rise in pre-tax profit were spun as a slowdown, and lo and behold, my once-glorious 50% gain vanished, leaving me staring at a 25% LOSS!

Were investors living in a fantasy land of sky-high expectations? I combed through every report, searching for a reason to sell—and BINGO! Found none! So, I held on tight.

On April 29, when Warpaint declared record sales, margins, and profits for the full year, the share price barely twitched! But now? It’s suddenly skyrocketing! What just happened?

SALES AND PROFITS REMAIN STRONG!

You wouldn’t believe it! Rumors say that Donald Trump’s backpedaling on trade war threats gave investors a boost. Although chairman Clive Garston reassured everyone that the US remains just a “modest” part of the operation, he did tease “SIGNIFICANT growth opportunities elsewhere.”

What’s on the horizon? Brokers predict a 15% surge in Warpaint’s like-for-like revenues this year—the NEW benchmark for success! If they fall short, expect my shares to face yet another heart-wrenching slide. But if they exceed that? I might just explode with joy!

The stock has been wild—perhaps a little too frothy—but it seems to be stabilizing. Brokers are feeling bold, predicting share prices could hit a mind-blowing 666p within a year! That’s a 40% increase from today! While it may not fly completely off the rails, I’m feeling cautiously optimistic for some solid long-term growth ahead… with a few dramatic twists along the way!