MYSZ

My Size ($MYSZ) CEO Sells at $5, Then Buys Consecutively at $0.80—Betting on Extreme Undervaluation or Attempting to Halt Collapse?

12/30/2025 15:09

My Size ($MYSZ) CEO Ronen Luzon purchased approximately 30,235 shares between November 20 and December 1, 2025, at an average price of $0.80-$0.91. This stands in stark contrast to December 30, 2024, when the executive team sold shares at $5.18-$5.40. The CEO's consecutive purchases at one-sixth of his prior sale price sends a strong signal that he believes the current stock price is severely undervalued. My Size is an Israel-based fashion technology company operating the Naiz Fit platform, an AI-powered sizing recommendation solution. The company addresses online apparel's biggest pain point—size mismatch—through artificial intelligence, having delivered over 42 million personalized size recommendations across 18 countries. Performance metrics are impressive: customer conversion rates improved 5.7x, return rates decreased 14%, and average order values increased 27%. In September 2025, the company acquired ShoeSize.Me to expand into AI-powered footwear sizing, and in May acquired Percentil assets to enter Europe's circular fashion market. Financially, the company shows a clear improvement trajectory. 2024 revenue grew 18% year-over-year to $8.26 million, while EPS loss improved dramatically from -$20.01 (2023) to -$4.39 (2024). Q2 2025 EPS of -$0.15 represented an 88% improvement from Q2 2024's -$1.28. Q3 revenue of $2.6 million showed 26% sequential growth. In his December 29, 2025 shareholder letter, the CEO projected approximately $10 million in 2025 revenue with $4 million in year-end cash, targeting $15 million revenue for 2026—representing 50% growth. However, extreme risk factors must be acknowledged. The market capitalization stands at just $3.03 million—an ultra-small micro-cap. The stock has declined 99.7% over five years and 82% year-to-date in 2024. From $3.41 in June 2024, shares currently trade around $0.90, having spiked to $6.51 on December 27, 2024, before plunging 86% in just two weeks—demonstrating extreme volatility. The company remains unprofitable with 2024 operating margin of -50.89% and profit margin of -47.39%. Debt-to-equity ratio stands at 12.97%. The company has survived NASDAQ delisting threats and executed a reverse stock split. With only 13 employees and 3.21% institutional ownership, liquidity is extremely limited. Despite the collapse, HC Wainwright maintains a Buy rating with a $3.00 price target—233% upside from the current $0.90 price. Valuation metrics suggest extreme undervaluation: P/B ratio of 0.42x trades at less than half of book value, and P/S of 0.26x is exceptionally low. Enterprise value of -$468.20K is negative, meaning cash holdings exceed market capitalization. The CEO's consecutive purchases are a strong positive signal, but context matters. On December 30, 2024, the CEO sold 8,000 shares at $5.18, while the CFO and CPO also sold. Major shareholder AVATAR SECURITIES sold 120,624 shares at $4.85. After the stock plunged 85%, the CEO purchased 30,235 total shares at an average of $0.83 from November 20 to December 1, 2025. This can be interpreted two ways: optimistically, the CEO believes the stock is grossly undervalued; pessimistically, it's an attempt to support a collapsing stock. While the $25,000 total purchase amount isn't burdensome for a CEO, four consecutive purchases suggest more than a symbolic gesture. Specific investment criteria: A positive scenario requires (1) Q4 2025 results showing revenue above $2.5 million with further loss reduction, (2) Q1 2026 revenue exceeding $3.5 million to support the $15 million annual target, and (3) stock price breaking above $1.50 as a technical resistance level. Warning signs include (1) Q4 2025 revenue below $2 million, undermining the CEO's $10 million projection, (2) quarterly cash burn exceeding $1 million, creating a mid-2026 liquidity crisis, and (3) stock breaking below $0.73 (52-week low), signaling new lows ahead. For the next six months, the most likely scenario is volatile sideways trading. The stock will likely fluctuate between $0.80-$1.50, driven by earnings releases and short-term trader activity. In a bull case, if Q1 2026 results validate the annual target and major customer wins or M&A news emerge, shares could reach $2.00-$3.00. In a bear case, revenue misses or faster-than-expected cash depletion could send the stock below $0.50 with renewed delisting concerns. The key inflection point is Q1 2026 earnings (expected mid-March), which will determine the viability of the CEO's $15 million target. Long-term, the company's fate depends on reaching breakeven. The CEO claims operating leverage is becoming visible as revenue scales, but hasn't provided a specific profitability timeline. Industry experts suggest fashion tech SaaS companies typically reach breakeven at $20-30 million revenue. If My Size maintains current growth rates, it could reach this threshold by 2027-2028. The risk is running out of cash before then. With quarterly net losses around $800K-$1 million and $4 million cash, the runway is 4-5 quarters. Additional funding would require massive dilution—shares outstanding already grew from 52.5 million (2021) to 910.8 million (2024). Competition is fierce. The AI sizing market includes well-funded players like Fit Analytics (acquired by Snap), True Fit, and Virtusize. My Size's differentiator is integrating sizing recommendations with resale platforms, though sustainable competitive advantage remains uncertain. However, 42+ million recommendation data points and proven metrics (5.7x conversion improvement) represent meaningful assets. In conclusion, My Size represents an extremely polarized opportunity. CEO buying, improving financials, and extreme undervaluation are powerful positives. But $3 million market cap, continued losses, 99.7% five-year decline, and extreme volatility are substantial risks. This is classic high-risk, high-reward micro-cap speculation. Conservative investors should avoid entirely. Aggressive investors should limit exposure to 1-2% of portfolio with full loss tolerance. Q1 2026 results will be the turning point. Until then, the prudent strategy is to monitor insider trading activity and monthly revenue trends from the sidelines.