Savvy Trades and Investments

[abh3vt]

BMBL has a lot going on under the surface. You're right that the GAAP numbers look good, but that is largely because they've stopped issuing stock options. I went through the exercise of calculating a non-GAAP number and on that basis, my calc shows their pretax margins declined y/y. Using standardized tax rates and NCI led to a decline in adj net and a drop in adj eps y/y. That and the drop in revenue forecast has put investors into a sell first mode and keeps me on the sidelines. On an EV / Ebitda basis its starting to look a little more attractive; at a price of 4.75, its now getting close to 5x. Its being really stretched to the downside and could rebound a bit in the coming days....but from what level?

Goes into the too hard pile for me. If I were to nibble, I'd start buying in the low 4s, with a FV of about 5.50