GME - My Best Current Micro-Cap Idea: BuzzFeed Inc.

2024-04-11 14:45:44 ET

Summary

• BuzzFeed sold its Complex business for $114 million or 2X revenue, in late February 2024. This transforms the balance sheet.
• The market is irrationally fearful of BZFD's $120 million 8.5% 12/3/2026 convertible, which has a 12/3/24 lender put option.
• Selling complex means everyone can row in the same direction, coupled with $23 million of FY 2024 cost savings, and this stock is (super mis-priced), at its current valuation.

As a small cap value / special situation analyst, what I love about Seeking Alpha is the ability to publish your research and ideas to a larger audience, perhaps much larger than the average distribution network of many of the smaller sell side shops that mostly cover micro-caps and sub $500 million market capitalization stocks. Further, every article is time stamped and if you're any good, as an analyst and stock picker, there is forever a library (or portfolio of your work) and a record of your calls, the good, bad, and ugly. Eventually, and this requires playing the long game, if you string together enough good calls, and importantly, with a well thought out thesis, on every idea, people might actually start to connect the dots and work out the good analysts, that one's that can actually pick stocks, from the average analysts....

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