MYSZ

My Size($MYSZ) CEO's Historic Low Buying Spree Signals 'Strong Bottom'... AI Fashion-Tech Extreme Undervaluation Opportunity?

11/26/2025 16:12

CEO Ronen Luzon of $MYSZ (My Size Inc.) has drawn investor attention with consecutive stock purchases in late November, particularly as these buys occurred near historic lows, signaling strong management confidence in the company's prospects. Based in Israel, My Size is a fashion-tech company providing AI-powered clothing sizing solutions. Its flagship 'Naiz Fit' SaaS platform helps ensure accurate size matching in online apparel shopping, contributing to reduced return rates and improved customer satisfaction for brands. Currently, over 100 fashion brands have adopted the company's AI sizing platform, with market expansion facilitated through integrations with major e-commerce platforms like Shopify, Magento, and Salesforce. The timing of CEO Luzon's recent purchases is particularly noteworthy. In contrast to when management sold shares at an average of $5.18 during the stock's December 2024 surge to $6.51, recent purchases occurred at rock-bottom prices: 13,500 shares at $0.77 on November 20 and 14,000 shares at $0.90 on November 25. This demonstrates an ideal trading pattern of selling high and buying low, suggesting the CEO views current share prices as extremely undervalued. Examining the stock chart, $MYSZ started at $3.41 in June 2024, gradually declined, surged in December, then experienced another severe downturn. The stock plummeted approximately 74% from $4.37 in January 2025 to $1.12 in September, inflicting significant losses on investors. However, such extreme declines could present value investment opportunities. Financially, My Size exhibits characteristics typical of a growing tech startup. Trailing twelve-month revenue reached $7.51 million, up 39.9% year-over-year, though the company still recorded a net loss of $3.56 million. However, with $4.49 million in cash holdings providing adequate liquidity, short-term operational stability appears sound. Notably, the debt ratio stands at just 13%, indicating excellent financial health. With a current market cap of approximately $3.46 million, the stock trades at extremely low valuations: P/S ratio of 0.30x and P/B ratio of 0.48x. These metrics are significantly below software industry averages of 5-10x P/S. However, this undervaluation also reflects ongoing losses and limited liquidity due to the company's small size. From an industry perspective, the AI fashion-tech market where My Size operates holds significant growth potential. Solving size mismatch issues—the biggest obstacle in online apparel shopping—through AI represents technology that could reduce billions in return-related losses. Fashion e-commerce return rates average 30-40%, with a substantial portion due to sizing issues. In September, the company expanded its solution portfolio by acquiring ShoeSize.Me, extending sizing technology beyond apparel to footwear. This strategic move broadens the application scope of sizing solutions to shoes and accessories. However, investors must consider several risk factors. First, ongoing operating losses and negative cash flow. Second, high volatility characteristic of small-cap stocks. Third, limited analyst coverage resulting in information gaps. Summarizing the current situation, $MYSZ sits at an intriguing juncture where extreme undervaluation meets consecutive CEO purchases. If AI sizing technology adoption accelerates and profitability improves, significant upside potential exists from current price levels. Conversely, continued losses and funding shortages pose additional downside risks. Investors should monitor whether the CEO's recent purchases represent mere stock price support or genuine confidence in a turnaround over the coming quarters through earnings results. Key observation metrics will include new customer acquisition, revenue growth momentum, and loss reduction trends.