| SKLZ Rightly blasted as an over-priced SPAC... in March of 2021. That was then. Now, they've authorized buying back half the debt, along with a share buy back. Have (or, had) $350 million in cash (maybe) versus $138 million debt, 21 million "implied" outstanding, 17 million outstanding, 46% institutions, 18% insiders... giving a float of 11 million... with 11% short (Sept 15) or 1.84 million (vs 1.39 in August). An obvious question in the cash vs. the burn rate... as, without implementing measures to preserve the cash, they could just burn through it so fast that nothing else matters. Even though Yahoo says they have more cash than required to buy all the debt ? Maybe that cash number is dated. But, if they have the cash... and the burn rate allows it... the entire float at current prices would cost $55 million, less than the $65 million they've allocated to the effort. The "implied" suggests "debt" perhaps means convertible note risks... so, the insiders might be "the same thing" as the shorts ? If its not insiders driving it down to take it private on the cheap... or doing the convertible note scam... and the cash holding isn't burned through faster than they can use it to buy shares... THEN there might be a trade here. DD the cash holding and the burn rate in cash versus "paper" accounting losses by reading the filings... check the convertible risks (and watch to see which debt they buy)... conduct a management integrity check... and you still might end up seeing it get delisted, stranding you in a "private" holding that prevents an easy exit ? Maybe a trade if it checks out. |
