Hello, in the earning call today around 11:00 minutes Batter is soaking about this swap.
Does somebody knew the mechanics how the deal is valued at 150M USD?
Actual DVLT value is approx. At 250M USD. With such asset position the company value would be 100M USD.
What is your understanding and interpretation?
Groupon Thesis
Most people aren’t paying attention to Groupon, thinking it’s an old tired company, and I this is precisely the opportunity. Earnings AUG 6 after close. The company has repurchased shares and finally saw revenue increase in Q1. They have years of customer buying data and have a real opportunity for AI training that the market could respond to, which they will likely mention in their conf call (they mentioned AI pivot last time).
-Approx 56% of the float is sold short (9 days to cover)
-Short interest increased recently despite the stock already rallying (Some newer shorts may have higher cost bases).
Given the large amount of short positions, a small amount of good news (incr revenue, any AI revenue, good guidance) could lead to significant jump. My thought is: the worst case scenario is that the stock stays mostly flat. I think there may be some real long-term growth here.
What do you think?