After delivering liquidation news, the market pushed up Luby's, Inc. (LUB) to impressive valuations. Many traders believe that they will receive $3 to $4 after liquidation because that is what LUB guided. However, I believe that the valuation made by the company is too optimistic. Given the COVID-19 situation and the real estate prices in Texas, the liquidation will most likely return $1.85 per share or something lower. With the market price at more than $2.30, I believe that there exists a good short selling opportunity.
Business Model And Liquidation News
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