Subject: LAMR
I think something is happening but I don't know what it is.
Hmm. I'm brainstorming here:
It's a drug company and they have a cure for cancer or AIDS?
No.
It's a technology company and they have a reusable rocket that will allow the easy commercialization of space flight?
No.
They have a completely new way of doing business, … la Yahoo?
No.
I give up. As far as I know, it's a company that owns and sells advertising space on billboards and bus stops. Whoopie! What can be happening? Let's say they take over every display advertising company in the U.S., so that if you want to advertise Burma Shave, you have to go to them? So what? They still won't be able to jack up rates to the sky, either because they're restricted by local governments, or because the advertisers would decide to spend their dollars on some other media.
Do you think someone will buy them out, given their valuation and 90%+ debt? No way.
I'll try to make a few calls tomorrow and gain more insight on this issue, but as far as I'm concerned, its valuation was insane at its low point of 16, and it's three times more insanely overpriced now.
I still think it would probably be safe for us to wait until next week, post split. My only decision is whether I want to short it, or buy puts. So far I only own puts, July 25's, which don't look too promising now that the stock's over 50. Perhaps the 40's are reasonable in price now; I have to run my Black-Scholes program and take a look. |
