Special stock DD
I just want to provide some DD on a stock which I am unsure if can be mentioned as of yet, so we will state that said stock is a retail company which specializes in the category of bed, baths, and beyond.
Let’s say said stock has an enterprise value of 3.2B and owns a very successful parent company who specializes in the sale of baby products and is appraised anywhere north of $1B.
Said stock has had a very large and aggressive amount of short interest averaging above 50% over the last few years and it is now currently being debated if said stock has an actual short interest of 101.06%.
Said stocks assets are valued at $7.04B with total liabilities of $5.16B, which has decreased from 2 years prior in 2020 where it was previously $6.23B.
Now, let’s say said stock has had many wealthy investors who are known to save companies as well as having a very solid track record. These investors are known as activist investors and apply drastic changes to companies and their business models, such as firing inefficient and greedy CEO’s and board members, just like they have done with said stock.
This company that specializes in the categories of bed, baths, and beyond, now have a new CEO, board, and investors focused on the business model, balance sheet, and their customers.
Continuing, it is important to note said companies’ yearly revenue and profits.
Said stock generates $7.37B yearly and this is as of right now in present day. In 2020 said company was generating $12B in yearly revenue. Their current yearly profits are $2.62B with a gross profit margin of 33.31%.
Cash on hand is at $85M.
Now, with the sheer amount of aggressive shorts on this stock betting that it will go bankrupt, when you put all of this information together, the most important question to ask yourself is if you believe this company would go bankrupt and is their value here.
Let’s put everything together to analyze.
Generates 7.37B yearly, with 2.68B profit. Has a total asset valued at 7.04B with a parent company appraised anywhere north of $1B, with total liabilities of 5.16B, and 85M cash on hand.
Has an institutional ownership of 108.07%, small float of 79.96M, has a SI anywhere between of 50%-101.06%, and an unjustified small market cap below enterprise value at only 485M.
Below are comparisons of other similar companies and their current market cap.
After reviewing all this information, it comes back to the same question you must ask yourself, do you really see this company going bankrupt? Do you see value where a company is undervalued and oversold?
If the answer is that you do not see this company going bankrupt, then jump on the fucking train boys and girls, because that’s what I’m seeing too!
Submitted August 05, 2022 at 01:35AM by ShortChecker
via reddit https://ift.tt/QjlVmpa