I usually steer clear of companies that chronically fail to convert revenue into cash flow, especially when the bridge to “adjusted earnings” is mostly share-based comp.
The potential take-private situation at BARK, Inc., however, is too interesting not to write up. I think this one has a high likelihood of completion, with a 47% spread to the higher bid, a 20% spread to the insider-led proposal, and a timeline that could plausibly wrap up within a few months.
Yes, we’re talking about another special situation.
Until we get a larger market flush with more widespread dislocations, special sits are where most of the opportunity set resides. That said, I’ve got some interesting stuff from the generals bucket in my research pipeline, which you’ll read about over the coming months. No matter the market level, there are always ridiculously mispriced stocks out there in forgotten corners of the market. It’s just a matter of flipping every stone and keeping your eyes open.
For now, let’s get on with BARK…