BB BBW Build-A-Bear Workshop, Inc. Loading... : Investor Sentiment and Bull/Bear Views

The author proposes a 5% Build-A-Bear allocation, arguing that at $24 the stock is a steal after having been overvalued. They cite 2025 as the company's best year for growth in a while as the catalyst. The main stated risk is that the stock had become overvalued, and no timeframe beyond 2025 is given.

Go long $BBW as a recession-resilient Build-A-Bear franchise trading cheaply at ~0.73x EV/Revenue (MC $255M vs Rev $454M), betting parents won't cut kid spending across the cycle.

The author argues Build-A-Bear (BBW) is starting to get very cheap, noting that at current prices the company is buying back about 6.8% of shares annually and paying a 3.7% dividend yield, for roughly 10.5% a year in combined shareholder return. They are not buying shares outright yet but are expressing a bullish view by selling 8 puts at a $22.5 strike for $1.9 each, collecting premium while agreeing to buy lower. The main risk is that the stock keeps falling and the puts are assigned at a worse price than the market.