Bleecker Street out with a report on the short case for Viggle Inc (NASDAQ:VGGL)
Why Viggle Inc (NASDAQ:VGGL) is a short, a CEO with a history of shareholder destruction, the stock being promoted by “Small Cap Street,” and numerous other issues.
Viggle: What Do Employees Say?
- “Smart and vibrant team, shamefully wasted”
- “The product no long works well, and is an outright embarrassment (see the reviews) the user base is plummeting.”
- “Misery and frustration is rampant among staff”
- “I’m not optimistic about the outlook for this company”
- “Sinking Ship”
- Pros: You work in a great neighborhood.
- Cons: You work for Viggle, the worst company of all time.
- Advice to Senior Management: Respect human beings.
- “Development team is poorly managed and developers are not respected or trusted by their own management (treated more as resources than as people.”
- “Management creates unrealistic schedules and timelines and promotes them as accurate throughout the company, then blames developers when dates aren’t met.”
Source: Glassdoor
Valuation
- Viggle Inc (NASDAQ:VGGL) currently trades at $5.73
- Market cap is $79 million
- This puts Viggle’s P/S ratio at 4.59
Base Case
- Base Case (Viggle trade in-line with entertainment stock peers)
- Viggle Inc (NASDAQ:VGGL) P/S: 2.48
- Implied Share Price: $3.09
- Downside: -46%
Bear Case
- Bear Case (Viggle trades in-line with S&P500 P/S)
- Viggle Inc (NASDAQ:VGGL) P/S: 1.56
- Implied Share Price: $1.95
- Downside: -66%
