InsideArbitrage December 2022 Mid-Month Update – Bottom Fishing

  • December 15, 2022
We started the year discussing a basket of “Broken Growth” stocks that had declined anywhere from 50% to 70% from their peaks and looking at the universe of SPACs for short ideas in an article titled January 2022 Mid-Month Update: SPAC Attack. It is fitting that we end the last mid-month update of the year discussing another company from that list of 38 broken growth stocks (screenshots included at the bottom of this article). Three of the companies on that list including Twitter, 1Life Healthcare (ONEM) and more recently Coupa (COUP) ended up with definitive merger agreements and the company I want to discuss today is likely to be another acquisition target. Not every company on the list was a potential long opportunity. For the better part of this year we were short WeWork (WE) and closed the position two weeks ago for a gain of 57%. Unfortunately the ones we picked on the long side like Doximity (DOCS), Coursera (COUR), Twilio (TWLO) and Nextdoor (KIND), also did not fare well. Thankfully we started all of them at well below our usual position size and only added to one of them. I still hold all of them and plan to...

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