3 Things I Love About BuzzFeed Stock + Warrants: Part 1. The Fundamentals
- After losing money for years, BuzzFeed has recently seen at least some fruit from its turnaround efforts—specifically in the latter half of the year. It actually makes money now.
- BuzzFeed has been working hard to improve margins. As you can see from the figures below, SG&A costs have come down dramatically; a reduction equivalent to 60% of the current market cap!
3. Selling off non-core assets will help the balance sheet in a gigantic way—check out the latest liquidity event (LINK BELOW).
As the company continues to pay down debt, reduce overhead costs, and sell off non-core assets, the financials will improve dramatically—and when they do, expect the share price to pop! Honestly, I wouldn’t be surprised if the Huffington Post (which they still own), is ALONE, worth more than $125M vs BuzzFeed’s current market cap of $101M…
I believe share prices could more than double in the next couple years and the warrants (BZFDW) present an even more attractive opportunity.
In Part 2. I will discuss the Technicals and briefly review the charts...
FD: LONG: $BZFD, $BZFDW, + CALL OPTIONS
