Archive FM

ITPM Podcast

ITPM Flash Ep48 Bumbling to Zero?

Broadcast on:
29 Jul 2024

ITPM Flash provides insight into what professional traders are thinking about in the markets RIGHT NOW! In this episode, Raj Malhotra discusses the importance of identifying companies with flawed business models that might be heading towards a zero valuation. He highlights how they can represent a "tail-trade" in a balanced and diversified portfolio of ideas. Diving deeper, he recognises Bumble Inc (BMBL) as a good shorting opportunity and outlines it's heavy reliance on goodwill and intangibles as well as its significant liabilities as key fundamental factors driving the decision. Coming up with the idea isn't all that Raj covers either, he then goes on to outline what he considers to be good ways to structure the "tail-trade" using out of the money Put options. If the idea plays out, the returns will be stratospheric. If not, the losses will be limited and insignificant at the portfolio level.