Disciplined Contrarian
Long/short equity, options

Care.com: Where Dollars And Portfolio Managers' Track Records Go To Die

In an article on Seeking Alpha on June 20, I posed some threshold questions that, to this date, I still have not heard a single sell-side analyst address with the management of Care.com (NYSE:CRCM). These questions pertained directly to:

  • CRCM's fundamental viability;
  • Whether the company has a coherent strategy, or, perhaps most importantly:
  • Whether CRCM has a demonstrable and achievable path to ever producing a penny of profit or cash flow.

I want to be clear up front: I am neither long nor short this stock. I have never owned a single share of CRCM (which is insanely expensive to short given the tiny public float and borrowing cost) nor would I ever contemplate buying it. That said,...

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