Investing General Discussion
- Thread starter Furious
- Start date
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I've already said that it's got no longterm prospects unless the new CEO is literally magic. It's just worth a whole lot more than it is right now. 90,000 companies depend on it for daily operations, including over 20% of F500 companies. Yet it lost 98% of its value in a month I called the floor pretty fucking well. I have no idea where it will settle at, but even 3 dollars is a heck of a lot of upside from where we are. It's up another 18% today and I sold my position yesterday.
It's yet another stock like GameStop that got shorted into oblivion and has a big upside especially if the shortsqueeze meme dream is real.
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I think the risk you aren't considering (and tbh I havent looked at their financials to gauge the chance of it happening) is that they declare bankruptcy with a re-org plan and fuck all the shareholders.
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People who've looked at their debt say they have cash on hand to service their debt for at least a year. They went into chapter 11 back in 2017 so we've already seen what happens there.
- 41,532
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- 41,532
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You made me look it up.
*in millions
EBITDA $635
AR $825
Cash $498
AP $295
LTD $3,060
Free Cash Flow ($74)
So $3b in LTD on EBITDA of $635m. Roughly 5x debt to EBITDA
Negative cash flows but not debilitating at this point.
The real question is how much are they paying in debt service. That debt to EBITDA ratio is bad but it doesnt look on paper like they are drowning (depending on the debt service).
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Tldr: there is an assload of fuckery going on. If they convert those notes to equity in Oct its creates a dilution. It sounds like tons of synthetic shares currently being traded. Im not saying there isn't an opportunity for profit, but I would avoid being too greedy. I expect when this things turns south, it will do so in a nano second.
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I think that's how they got down into penny stock territory in the first place.
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SPIR +17% on the Wall Street Journal article showing them being one of only two players in the industry space.
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Falstaff
Ahn'Qiraj Raider
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This is my one pure speculation trade. When it was a buck 40 a share or so earlier this week I bought a couple hundred.
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Same. Only i own a few more than a couple of hundred
I like the company and the model and they are nearly profitable. Losing about $1 a share and shrinking. Earth orbit/space is one heck of a moat.
Burns
Golden Baronet of the Realm
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Still loosing $1 (like ~50%?) a share? Owch! Where you looking to hold it a while or did you buy in at the beginning of the year and get stuck?Same. Only i own a few more than a couple of hundred
I like the company and the model and they are nearly profitable. Losing about $1 a share and shrinking. Earth orbit/space is one heck of a moat.