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Switch Buy Pullback

|Includes: Intel Corporation (INTC), SWCH

Summary

A look at current SEC Filings

Relative valuation

Naked Shorting Data on Day 1

HISTORICAL DEBT

A look at current SEC Filings 

13G Filings from Hedge Funds 

Intel $INTC  owns 9 million shares of Switch Link

DT GRAT CS, LLC holds 13 million shares of Switch Link 

Insiders have buy options @ 17

Roy Rob Chief Executive Officer has option to buy 583728  shares @ $17 Link

Morton Erin Thomas President and General Counsel  has option to buy 1447806   @ $17 Link 

Class B share ownership

ROSKI EDWARD P JR owns 3999996   class B shares Link 

Relative valuation 

Though there is debt concern given new data center in Atalanta will be operational early next year we expect a growth in business 

Lets look @ EBITDA and H1 2017 Revenue Growth

Debt is not as big as a problem as projected ( they will be using majority of money from IPO to pay back debt) 

$SWCH Revenue Growth and Profit Margins

Source:SWCH's S-1 filing

Historical Results

Naked Shorting Data on Day 1 

Approx 6 millions hares were shorted and there is no way of figuring out what % of shares were covered 

Source FINRA 

Client Snapshot

Source:  https://www.switch.com/clients/

EPS current

Total float

DEBT

500 million from IPO will be used to clear 848 million debt on books

 Source: simplywall.st

Revenue and EPS will shoot up when Atlanta center becomes operational early next year

Source: simplywall.st

Summary

  1. The only profitable tech IPO of 2017
  2. Shareholders don't have voting rights which is the trend with all IPO's post SNAP 
  3. 28 odd million float with underwriters having access to purchase additional 4 million odd shares 
  4. Impressive client list with 10% of business coming from EBAY alone 

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in SWCH over the next 72 hours.