Mar. 25 at 8:55 AM
$ATHM
Is extremely unattractive,
Stock is down -85% in 5 years, operations revenue have crashed, new majority holder is likely to steer the business in a new direction completely out of line with current online dealership model. Basically, you own an online platform, a brand… But also a reputable well established brand, zero debt but more importantly, a load of cash trading above market capitalization +a fat dividend premium that ought to keep you guessing and waiting. Better even, management is repurchasing shares and a lot of it.
So what the stock is ugly? A combination of general neglect ( Chinese ADS don’t have the best reputation these days), derelict revenue model and bottom of the ocean stock price ( share are trading at their all time lows) ought to warrant a contrarian opportunity.
The crowd thinks the company stinks, it stinks indeed. But at Uglystocks that exactly what we like. Stinky, ugly, cash rich, bottom of the barrel stocks with zero debt and a fat dividend.
