Disciplined Contrarian
Long/short equity, options

Care.com: Too Little Too Late?

As it approaches the late February release of its full-year 2015 financial results, Care.com (NYSE:CRCM) continues to encounter a lethargic reception by the equity market. The shares are down approximately 65% since the January 2014 IPO, and aggregate public shareholder value of roughly $350 million has been destroyed in that time.

Despite some modestly encouraging trends on the expense front, the company continues to hemorrhage cash. Top line growth continues at a nice (albeit slowing) pace, but also remains unable to be translated into cash flow.

Based on a variety of factors outlined below, I believe the shares could trade as low as $4.25. By way of comparison, the market's current implied value of the business (after backing

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