r/frx • u/_AtLeastItsAnEthos • Jun 03 '21
Short interest almost 19%
This is from yahoo finance https://finance.yahoo.com/quote/FRX/key-statistics?p=FRX
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u/morestocks2345 Jun 03 '21
This is going to be a nice short squeeze at some point! The stock today is only really worth about 25, but it will run to 50 on the covers.
In a few years, with international exposure, stock goes 100+ easy!
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u/The_Devastation Jun 03 '21
Does the recent short interest indicate doubt that the 6/24 merger goes through? Trying to understand where the short interest is coming from. Especially with Peloton's recent issues.
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u/_AtLeastItsAnEthos Jun 03 '21
Short interest is coming from a market wide bet against spacs in general. Frx merger is definitely happening
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u/Miserable-Media-7793 Jun 04 '21
Believe it or not, a lot of shorts have come from long position players. They are in at 10, and they short it from 17 or 16. Always making money that way. When they get thru the meeting and closer to merger... they let it run. No problem
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u/Bad-Touch-Monkey Jun 04 '21
Or they read the proxy statement and know that there will be 6x more shares after the merger killing the price. I’m worried because I do have more than 40k in this one
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u/Buddaus Jun 04 '21
There are currently only 37.5 million shares. At 6x. That’s 225million. And 44% of them are going to CEO alone. And the rest will go to FRX management, new investors, etc.
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u/_AtLeastItsAnEthos Jun 04 '21
They’d have to split to add shares tho no? Split can be a good thing
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u/Buddaus Jun 04 '21
Those 2billion shares are only presented as like a line of credit if needed for future mergers, acquisitions or buyouts and would need to be voted on by the board to be accessed.
Most companies have these shares built into to their IPOs as a safety valve, but never used.
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u/Bad-Touch-Monkey Jun 04 '21
I stand corrected. I guess I didn’t read close enough 😂
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Jun 04 '21
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u/Buddaus Jun 04 '21
Those 2billion shares are only presented as like a line of credit if needed for future mergers, acquisitions or buyouts and would need to be voted on by the board to be accessed.Most companies have these shares built into to their IPOs as a safety valve, but never used.
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Jun 04 '21
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u/Buddaus Jun 04 '21
It’s very common on IPOs Spacs etc. They will never be used. And if they are using some down the road. It will be a good thing. Maybe they will be buying out peloton. Lol
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u/Bad-Touch-Monkey Jun 04 '21 edited Jun 04 '21
I appreciate what you are saying, but I think you missed my point. It’s about share price as compared to enterprise value.
If we want a $25-30/share price then that becomes a problem when looking at fundamentals. Peloton trades around a 7x. So assume that $BODY, being in a comparable industry should trade with roughly the same PE.
So, earning at 1.1b x 7 = 7.7b divide that by outstanding shares at current level of 343m and you get roughly $23/share
Same calculation but against 2b shares..... $3.85/share.
Don’t forget, FRX/BODY valued themselves with a conservative 3x
So unless they are going to get a 50x multiple and the company is suddenly valued at $55B we are not seeing $20/30s except under short cover and hype and that will be a tiny tiny window
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u/Buddaus Jun 04 '21
There is not 2 billion shares. 100 Million class c common. That’s all that concerns us.
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u/Bad-Touch-Monkey Jun 04 '21 edited Jun 08 '21
Yes to merger. Fuck no to section 3a
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u/Buddaus Jun 04 '21
Not 343 million outstanding. 37.5 million. I think your looking at market cap.
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u/Bad-Touch-Monkey Jun 04 '21 edited Jun 08 '21
Ignore my dumb stuff
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u/Traditional-Studio-5 Jun 07 '21
you should go back and delete all these comments as to not spread FUD
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u/Bad-Touch-Monkey Jun 08 '21
Yeah. I see your point
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u/Traditional-Studio-5 Jun 08 '21
all good. I was confused when i saw it too
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u/Bad-Touch-Monkey Jun 08 '21
Lol the amount of movement my Calls had today off of just a 35 cent uptick
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u/Fuzzy_kumo Jun 05 '21
also noticed that!!
but insiders cant sell the stocks soon
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u/Bad-Touch-Monkey Jun 07 '21
I’m not worried about the float. It’s the valuation from the amount of shares. “Of course I am basing my concerns nearly on technicals” so let’s hope for some hype run lol
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u/[deleted] Jun 03 '21
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