With twin tailwinds in online shopping and the global supplements industry, Mimi\u2019s Rock (Mimi\u2019s Rock Stock Quote, Chart, News TSXV:MIMI) is not only a good buy but the stock has been hiding in plain sight. So says Beacon Securities analyst Doug Cooper who kicked off coverage of MIMI with a \u201cBuy\u201d recommendation and $1.50 target, which at press time represented a projected return of 233 per cent. Toronto-based online dietary supplement and wellness company Mimi\u2019s Rock owns the Dr. Tobias supplement brand and the All Natural and Maritime Naturals skin care brands and operates an \u201casset light\u201d business model whereby it employs third party manufacturers who ship their products directly to Amazon from shipment to the customer. The company bought the German-based Dr. Tobias brand in July 2018 for $29.8 million, where at the time the brand was doing about $30 million in revenue, and then acquired All Natural Advice and Maritime Naturals from a Canadian-based skin care product company in December 2019 for about $8.5 million. MIMI went public through an RTO in May 2019. Cooper noted that Dr. Tobias\u2019 lead product since 2013 has been its omega-3\/fish oil liquid gels, which contain three to five time more DHA and EPA than most other brands but are enteric coated to help avoid the off-putting fishy burps related to other similar products. A consumer survey in 2014 rated the Dr. Tobias omega-3 supplement the highest quality in the US, allowing the brand to grow substantially, with currently about 20,000 consumer reviews on Amazon with an average of 4.5 stars for its fish oil product and 38,900 reviews for its colon cleanse. \u201cIn our view, this is one of the highest number of reviews for any product we have seen on Amazon and speaks to its market position within the vitamin and mineral supplement segment,\u201d Cooper said. So far, MIMI\u2019s share price has traded below its debut price of $1.25 and is currently in the $0.50 range. But Cooper thinks the stock is undervalued, pointing to the growth in the global supplement industry in general but in particular due to the COVID-19 pandemic where consumer interest in health and wellness and the importance of strengthening one\u2019s immune system has grown. Cooper quoted a Fortune Business Insights report in February 2020 that put the annual CAGR for the industry at 6.5 per cent and moving from $45 billion in 2018 to $74 billion by 2026 \u2014 and that was before the pandemic took over. But as well, Cooper said the accelerating shift to online commerce, again aided by the pandemic but stretching beyond that framework, will be a boost for a company like Mimi\u2019s Rock which does its business via Amazon, the primary beneficiary of the transition to e-commerce. \u201cMimi\u2019s Rock is a company that benefits from all of these trends as its sells its Dr. Tobias brand of dietary supplements and All Maritime Natural skin care brand online, predominantly through Amazon and as such is well positioned for growth,\u201d Cooper said. Valuation-wise, Cooper compared MIMI to Jamieson Wellness. He said Jamieson has a comparatively minimal online presence and currently trades at 5x latest quarter annualized sales and 31x latest quarter annualized EBITDA, which is well above Mimi\u2019s 0.9x and 6x, respectively, making for a 75-per-cent discount for MIMI, according to Cooper, a massive valuation discount, he said. In fact, Cooper said that Jamieson, whose share price is currently up about 40 per cent in 2020, should by rights be acquiring Mimi\u2019s Rock, arguing that Mimi would augment Jamieson\u2019s channel strategy through its online relationships and experience and Jamieson could move Mimi\u2019s third party manufacturing in-house and cut Mimi\u2019s corporate overhead costs, all of which would point to a very accretive acquisition for Jamieson. Even if Jamieson were to pay a 400 per cent premium to Mimi\u2019s current share price, we believe it would still be 14 per cent accretive to Jamieson on an EBITDA per share basis,\u201d Cooper said. The two approaches \u2014 calling MIMI a catch-up trade in terms of likely significant upwards multiple revision and seeing the company as a prime acquisition target \u2014 make for a stock with \u201cwith little downside risk,\u201d assuming MIMI\u2019s revenues remain at least stable, according to Cooper. \u201cWe believe Mimi\u2019s Rock is ideally positioned for growth as a COVID tailwind stock. Given the current valuation of the shares, we do not believe they reflect the intrinsic value nor any take-out premium, which creates an exceptional risk-return opportunity,\u201d he said. On the numbers, Cooper is estimating Mimi\u2019s to generate fiscal 2020 revenue and EBITDA of $43.3 million and $6.5 million, respectively, and fiscal 2021 revenue and EBITDA of $48.2 million and $7.9 million, respectively. Mimi\u2019s Rock last reported earnings on August 26 where its second quarter financials featured revenue of $10.9 million, up 25 per cent year-over-year, and EBITDA of $1.6 million compared to $1.4 million a year earlier. Both results were records for the company.