Hedgeye CEO Keith McCullough is adding Playboy (PLBY) to the long side of Investing Ideas. Below is a brief note.
Since the stock only went up, I have had to wait and watch for a legit #oversold signal on Playboy (PLBY)... until this morning. Now we're getting a nice sale to buy into!
Here's an important Independent Research view by The Axe in this name, Brian McGough (and his research partner Jeremy McLean) – Retail Pro subscribers will also be aware:
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Takeaway: We misinterpreted last night's S-1. This was purely a registration of shares, no sale happening yet. Still a buying opportunity. A correction to last night's note, we misinterpreted the S-1 filing. This was purely a registration of shares, no sale is happening yet. 50% of these shares came off of lockup on April 12th with the stock trading above $14 for 20 trading days within any 30 consecutive trading day period. All of the shares are being registered now, the other 50% will come off lockup 12 months after the deal closing in Feb 2021. The shares off lockup can now (when SEC finalizes registration) be sold via Form 4 during appropriate windows if desired. No change in float until a sale happens from these holders. The market looks to be misinterpreting the filing as a liquidity event like we did. We see this as a buying opportunity on a big Tail Long idea. We're hosting a deep dive Black Book on May 11th at 11am for Institutional and Retail Pro subscribers to review the bull case on PLBY and why it will be a $10bn company in 3-5 years. |
To buying the big ideas on red,
KM
