FIZZ has been one of the most hated stocks over the last 12 months losing ≈70% market cap.
The float is over 53% shorted currently @ a ratio of 11.52
We can see that there is + divergence from march 2019 till now.
I do not expects FIZZ to stay at its current valuation for much longer considering that the PE is 37% below industry and 55% below the company's 5 year AVG
The company has no debt and the revs, profit and EPS are not consistent with the valuation especially so far below industry due to a lawsuit that has not had a material impact on income statement except court costs.
DCF margin of safety stands at 42% w/ a reverse DCF growth rate of 9.58%
FIZZ is priced perfectly for a buyout and I'm sure PEP and KO are watching, but would they be willing to pay the premium up to fair value is the question.
The float is over 53% shorted currently @ a ratio of 11.52
We can see that there is + divergence from march 2019 till now.
I do not expects FIZZ to stay at its current valuation for much longer considering that the PE is 37% below industry and 55% below the company's 5 year AVG
The company has no debt and the revs, profit and EPS are not consistent with the valuation especially so far below industry due to a lawsuit that has not had a material impact on income statement except court costs.
DCF margin of safety stands at 42% w/ a reverse DCF growth rate of 9.58%
FIZZ is priced perfectly for a buyout and I'm sure PEP and KO are watching, but would they be willing to pay the premium up to fair value is the question.