Lares Capital
Hedge fund manager, small-cap, long/short equity

Web.Com: Bankrupt In 5 Years? (And Other Fun Topics)

Last week, Renzo Dancourt and I wrote articles about (WWWW). We both believe that the company is grossly overvalued but somewhat differ how much its equity is worth. I believe that WWWW's equity is worthless and the company is likely to file for bankruptcy within next 5 years (see Table 5).

These articles have generated a lot of feedback and a response from JP Morgan. I would like to cover some key points again as WWWW accounting is incredibly convoluted (in my view, on purpose) and provide answers to some common complaints about our last week's articles.

Company is in the "quiet period" and cannot respond to the allegation.

The "quiet period" actually refers to pre-IPO...

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