Bonitas Research short Byrna Technologies, thinks stock going lower

In a recently published report, Bonitas Research said it was short Byrna Technologies (BYRN), which provides non-lethal launcher alternatives to firearms. “Our analysis of Byrna’s primary sales channels question the accuracy of its purported sales growth, purported profitability and claimed consumer interest… Byrna disclosed it had twenty ‘Premier Dealers.’ However, we reviewed Byrna’s ‘Authorized Dealers’ list and found only twelve ‘Premier Dealers’ listed, not twenty,” the report reads. Bonitas further states that Amazon (AMZN) sales growth and Google (GOOGL) trends growth suggested “stagnant growth for Byrna’s DTC business. On April 10, 2024 and September 20, 2024, we reviewed Amazon sales data for each of Byrna’s listed products and we estimate Amazon sales growth somewhere between ~5-10%.” “We found many highly rated competitors offered at significantly lower prices which, to us, suggests headwinds for Byrna’s future sales growth and profitability… To us, Byrna’s purported figures don’t add up. If Byrna’s DTC strategy was so successful, why focus on car washes, teas shops, barber shops, garages and back alleys? We are short BYRN and think its stock is going lower,” the report adds.