$QRTEA up 12%, Burry's buy is paying off big
Here's further analysis on why its up
We spent the weekend digging a bit more into one of Micheal Burry's largest public stock holdings. The stock looks extremely attractive and misunderstood. Since our original writeup the stock is up over 30% and continues to climb higher.
If the thesis plays out the stock could be a multi-bagger. There is a ton of debt on the balance sheet and the price chart over the past five years shows an equity that has collapsed 90%. But almost all the debt is termed out at a fixed rate for a long duration. There is a new management team rapidly cutting costs and selling assets.
A lot of bad news is out. The valuation is at basement level lows. And the equity is priced like bankruptcy is near. I think the market has it all wrong, & it’s down 80% YTD. Any good news will send the equity up. I think it is why Michael Burry owns the stock.
Names like this excite me. They are overlevered and extended. If operations return to a more normalized level, the equity will re-rate pretty hard.
Hope you enjoy my research
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