Okay people I hope a few of you made some good income on yesterday’s first day of squeeziness!
If you’re new to the inventory let me sum it up for you as a result of it isn’t solely concerning the squeeze.
You’ll be able to watch my movies right here for the DD:
The follow-up why Burry obtained out:
And the rationale why you should not crap your pants in these ups and downs.
Lengthy story quick, I’ve a worth goal of $15-20 bucks and if the basics change for the higher, i.e. de-leveraging debt, fixed FCF and many others. my PT would possibly go larger.
I anticipate plenty of motion within the coming days, as a result of the inventory has gained plenty of consideration yesterday. So hundreds of individuals know the inventory now for its excessive quick curiosity and it is a small cap!
What’s not very well-known most likely, that the corporate is oversold because of worry of Biden Administration and worry that the corporate can not restructure their debt. However there’s the previous saying that goes: “If the US banks do not lend you cash, go to fucking Japan!”
For those who see a inventory buying and selling at $7.20 that has an EBIT per share of $2.29 you need to get .
The ratios are additionally insane:
The steadiness sheet would not look good on the first look:
However keep in mind this. It is a REIT, extremely leveraged like several REIT in 2021. However take a look at this:
PPE depriciates over a few years (I believe as much as 50 years or so) however what occurred to the worth of the land and buildings. Have a look at present uncooked materials costs, there must be huge hidden reserves there. You’ll be able to see in my first video that my estimate of substitute worth is about $12.5-15 per share when hidden reserves are unlocked. I have never modified my thoughts.
However again to the squeezy half. No recommendation right here, do your individual analysis! Even after the quick quick squeeze yesterday, even at this worth the inventory is a steal if my estimates are proper and you do not even want the squeeze for those who personal shares, as a result of the inventory will swing again to it is intrinsic worth over time.
The nice factor is that there’s the potential for a squeeze and if it occurs, the return to intrinsic worth would possibly go a lot quicker. Additionally providing the possibility – you probably have balls of metal – to revenue massively from an excellent larger worth!
All I wish to say is: purchase low-cost, promote excessive, this inventory remains to be low-cost and a squeeze likelihood remains to be there! I do my half and maintain long term. Purchased into the squeeze yesterday slightly so my price foundation went up however who cares. And in case there’s a squeeze, I’ve some quick time period choices as effectively.