IB Net Payout Yields Model

Rumble: Wait For Post SPAC Discount

  •  Rumble investors vote on the deal on September 15.
  • The company will raise ~$400 million without any redemptions, but the weak financials should doom the stock once public.
  • The stock will likely sink from the current $3+ billion market cap when revenue totals are below $50 million.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
Rumble plans to close the SPAC deal with CF Acquisition Corp. VI (NASDAQ:CFVI) next week via a shareholder vote. The proclaimed neutral video platform competing with YouTube, owned by Alphabet (GOOGGOOGL), remains a work in progress. My investment thesis is Neutral on the stock until the SPAC deal closes and the financials are more visible with a likely discount to occur typical of most SPACs.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Sept. 23

Market isn't helping, but Rumble is getting crushed here. Remember, the negative thesis is based on weak financials and the company has yet to release Q2 numbers. 

Finviz Chart

Update - Sept. 19

Rumble is up 10% today on closing the SPAC deal with the stock trading under RUM now.  

Video-sharing platform Rumble (NASDAQ:RUM) said that after successfully completing its business combination with blank check company CF Acquisition (CFVI), its shares will begin trading on Nasdaq under the ticker symbol RUM from today.


Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

C3.ai: Out Of Steam (Rating Downgrade)

Archer Aviation: Promising Developments