Dallas Salazar
IPOs, contrarian, long/short equity, long-term horizon

TownSquare Media: Initiating With Caution

This initiation article of Townsquare Media, Inc. (NYSE:TSQ) will focus on the markets willingness to value an asset, in this case a terrestrial radio company, and the markets willingness to allow the asset to sort out the growing pains of being a young company. This article will make the case that based on a highly uncertain total addressable market, the potential for competition to capture market share, the substantial debt at the company, and a highly unusual accounting of and valuing of balance sheet assets that Townsquare Media is an avoid at best and should become short at worst.

Who is Townsquare Media?

"Townsquare Media, Inc., owns and operates radio, digital, and live event properties. It engages in...
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