r/stocks Mar 25, 09:33 AM
$ATHM, potential cigar-butt. PE 10, negative EV, 10% dividend yield, trading below Net Current Assets. zero debt, share buybacks.
ATHM Is extremely unattractive,
Stock is down -85% in 5 years, operations revenue have crashed, new majority holder is likely to steer the business in a different direction , completely out of line with current online dealership model.
Basically, you own an online platform, a brand… That’s it!
At the same time you are also purchasing a reputable well established brand, zero debt, but more importantly, a load of cash worth more than its market capitalization +a fat dividend premium that ought to keep you guessing and waiting.
Better even better, management is repurchasing shares, and a lot of it.
So what the stock is ugly? A combination of general public neglect ( Chinese ADS don’t have the best reputation these days), derelict revenue model and bottom of the ocean stock price ( share are trading at their all time lows) ought to warrant a contrarian opportunity.
The crowd thinks the company stinks, it stinks indeed. But at Uglystocks that exactly what we like. Stinky, ugly, cash rich, bottom of the barrel stocks with zero debt and a fat dividend.
What’s not to like? Icky indeed. I love me some icky kisses when they are cheap enough. Better some love than none.
Also, beauty is in the eye of the beholder as the saying goes.
By the way, Haier Group is the new majority shareholder. I would probably would want to align behind such a company plans and see where it leads when I can ride on the coattails of one of its subsidiaries at all time low + fat ass dividend yield.
Nobody wants the stock, I am buying some and will probably buy more as the stock falls.
I keep it simple and straightforward. Prompting valuation with AI is fairly easy these days. Go ahead and investigate and decide for yourself.
Crank up the Annual reports and do your own due diligence and prove me wrong. I am an idiot. Don’t listen to me.
( Not investment advice.)
submitted by /u/orishasinc2
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