5/14/24 - $rum - laughable valuation on trends... buyer beware
5/14/24 - vrockstar -
RUM
- of the 3 options we always have, buy/sell/hold... buying is probably the worst option. almost kind of weird how the stock is worth $2.5 bn in this tape - $100 mm in revenue, 25x sales? gross profit mgn is actually getting worse? they're spending more in opex? $200 mm in the bank and they minimally burn $100 mm this year? look - idk if this is a LT buy - but it's VERY hard for me to understand how the stock doesn't need to have a valuation evaluation done which is massively lower. i'll look to buy some MT puts on this thing closer to the gap below $4 for starters. and i'm being generous with earnings here. i think it's probably worth 5x at most sales and i'll even give them credit for no cash burn and the full $200 mm which would be $500 + $200 = $700 mm - which is 70% lower.
RUM
- of the 3 options we always have, buy/sell/hold... buying is probably the worst option. almost kind of weird how the stock is worth $2.5 bn in this tape - $100 mm in revenue, 25x sales? gross profit mgn is actually getting worse? they're spending more in opex? $200 mm in the bank and they minimally burn $100 mm this year? look - idk if this is a LT buy - but it's VERY hard for me to understand how the stock doesn't need to have a valuation evaluation done which is massively lower. i'll look to buy some MT puts on this thing closer to the gap below $4 for starters. and i'm being generous with earnings here. i think it's probably worth 5x at most sales and i'll even give them credit for no cash burn and the full $200 mm which would be $500 + $200 = $700 mm - which is 70% lower.