I'd have to see the nature of the losses, as often companies
by krudler (2024-04-01 16:57:37)
Edited on 2024-04-01 17:04:45

In reply to: Who could have predicted this? (link)  posted by sprack

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do their best to show tax losses to avoid paying taxes and to get carryforwards. I don't care enough about this stock to look it up at the moment, but $60M does seem pretty large on that level of revenue. What's particularly egregious to me is that absurd valuation on only $4M of revenue. If CapIQ is to be believed, the current stock price implies a $6.24B enterprise value, implying an LTM revenue multiple of 1,560x. Anyone going long at that value has to hate money.

Usually there's a 6-12 month lock-up period on the SPAC sponsors, and it would be very difficult (impossible) to dump 60% of the company in one day, so when he's ultimately able to fully exit his position (if he chooses to do so) it's highly likely that it will be at a tiny fraction of this value. Also I doubt it's a great acquisition target for X as I'm sure there's a decent amount of overlap between X users and Truth Social users, so X wouldn't be acquiring the full 9 million users (assuming they're all even unique users and not bots).

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