If XOXO hits $5, it'll be one of the best shorts of the year. I expect it to go down the same path as PSIX, COVD, WCII, or TGNT.
Company has $6.4 billion in debt, throw away the meaningless goodwill, the stock has a negative book value. For every dollar it brings in, 50 cents goes right out the window to pay interest on its debts. It will never make a dime. It is expected to lose $2 billion this year, another $2 billion next year. Where's it gonna get the money?
XOXO makes COVD look like a real blue chip stock.
XOXO is a short to zero, very little doubt in my mind.
Regards,
Tom |
