Hi all,
Question - does anyone know why Weight Watchers (WW) is up from March to now?
What caused the share price to increase over 150% - the business doesn't seem to be a great one.
Heavily leveraged, shareholders' deficit and basically dilute shareholders consistently.
$1.45b at 7.75% in debt as of 2Q (it's due in a "long" time but you cannot just ignore it).
As for capitalized software expenditures, do you include them as capital expenditures?
If so, WW have a free cash flow problem, too...
Not positive working capital in the last quarter either - liquidity problems? To prove my point, cash balances have halved between December 2022 and now...
Further, so far this year, they're making an operating loss of $2m vs Operating Income of $22m last year. If you invested this time last year, you'd be up 45%!
I guess, my real question is, why has the market re-valued this company that seemingly has gotten worse and not others that seem to be healthier?
Has anyone here invested into WW?
Thanks in advance.
Harshu Vyas |
