4 Comments

I think I have truly turned into a degen myself, blinded by the upside potential here. My current position size is 2% with 6$ avg. cost.

Maybe I don't see why the debt is such a problem. Why does management, if they are good operators, continue to invest in opening new stores instead of paying down debt from their operating cash flow?

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Yeah, if they can refinance, huge upside potential. (Minus 40% dilution). They should be able to refinance. Should. But it's totally out of everyone's control

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When buying Byon, you are effectively buying TCS at 17$, since that's the strike price of the preferred debt.

Since today's price is approx 4.5$, are we not 40x our investment when byon will 10x their equity in TCS. Also Byon itself to 10x needs its own thesis to play out right? I.e if TCS succeeds in custom closet business, it is still possible that their overstock and bb&beyond business will fail, so not sure if I agree buying Byon is better than buying TCS here.

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Risk adjusted, I don't want to buy anymore TCS until after they refinance. I haven't started a position yet in BYON, so that's what I'll buy a small piece of next. The turnaround strategy for Overstock was very credible. I like both, but buying TCS before debt refinancing is a little too much of a gamble. I put degen in the name somewhat tongue-in-cheek. I prefer investments over gambles

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