BARK: 'Show Me' Story Is Improving, Path To Profitability In Sight

Mar. 08, 2024 2:19 AM ETBARK, Inc. (BARK) StockBARK14 Comments

Summary

  • The company's financial strength is notable, with about 40% of its market cap in net cash.
  • Despite concerns about the sustainability of free cash flow from inventory liquidation, BARK doesn't exhibit significant cash flow challenges.
  • Evidenced by improving EBITDA margins, from negative 3% in fiscal Q4 2023 to an expected 2% in Q4 2024, BARK appears on a trajectory toward profitability.
  • Looking for a helping hand in the market? Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Learn More »

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Investment Thesis

BARK, Inc. (NYSE:BARK) is starting to regain its footing, even though this investment thesis is demonstrably not blemish-free, and is led by a management team that has misfired on many occasions in the

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This article was written by

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.

With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months.

Through his 10+ years analyzing countless companies, Michael has accumulated outstanding professional experience in tech and energy and a following of over 40K on Seeking Alpha.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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