PartyCity: A Typical Market  Overreaction

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About: Party City Holdco Inc. (PRTY)
by: Iki Research
This article is exclusive for subscribers.
Iki Research
Value, growth at reasonable price, contrarian, special situations
Summary

Party City reported disappointing earnings on November 7th, 2019, and the stock is down more than 70% since that day.

But I consider their business to be, despite the high level of debt, still in a good shape, especially the wholesale segment.

Trading at historically low valuations, and being priced for the worst, PRTY is definitely a buy under $2.

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