Author Topic: RMBL - RumbleOn  (Read 31371 times)

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 931
Re: RMBL - RumbleOn
« Reply #140 on: February 06, 2019, 02:17:35 PM »
One of the things that always confused me about their pitch was that this was billed as not being 'capital intensive' - not requiring much capital.  I guess they would say that because they only had a few key sites and everything else was outsourced to dealer-parters, auction-photo-inspection outfits, etc..  But they had to keep raising capital to fund growth, continually expanding their borrowing, continually selling new shares.  I get that they aim for very quick inventory turns, but they always had to finance that inventory and it is a revolving door right?  Growth means lots of capital tied up.

Not sure how their previous plan squares up with the money losing acquisition - but I suppose you can hope that it isn't really a cash money loser and that it comes with some complementary useful assets for the power sports biz.  Certainly looks like profitability is a ways off now.

Anybody know if they have successfully expanded into the rest of "power sports" like they kept saying?  Or are they still a motorcycle only outfit?

Speaking of raising capital, they just announced that they will be doing another public offering of stock.

https://www.sec.gov/Archives/edgar/data/1596961/000165495419001130/rmbl_ex991.htm



cameronfen

  • Hero Member
  • *****
  • Posts: 516
Re: RMBL - RumbleOn
« Reply #141 on: February 06, 2019, 03:11:37 PM »
One of the things that always confused me about their pitch was that this was billed as not being 'capital intensive' - not requiring much capital.  I guess they would say that because they only had a few key sites and everything else was outsourced to dealer-parters, auction-photo-inspection outfits, etc..  But they had to keep raising capital to fund growth, continually expanding their borrowing, continually selling new shares.  I get that they aim for very quick inventory turns, but they always had to finance that inventory and it is a revolving door right?  Growth means lots of capital tied up.

Not sure how their previous plan squares up with the money losing acquisition - but I suppose you can hope that it isn't really a cash money loser and that it comes with some complementary useful assets for the power sports biz.  Certainly looks like profitability is a ways off now.

Anybody know if they have successfully expanded into the rest of "power sports" like they kept saying?  Or are they still a motorcycle only outfit?

Speaking of raising capital, they just announced that they will be doing another public offering of stock.

https://www.sec.gov/Archives/edgar/data/1596961/000165495419001130/rmbl_ex991.htm

I feel like sometimes this gets lost in translation.  When they say not being capital intensive I think they mean not requiring a lot of fixed capital. What I care about is not being fixed capital intensive so much as not requiring a lot of financial capital.  For example, Movie Pass (Helios Matheson) is a subscription service to see as many movies in a month as possible.  They are very fixed capital lite as they are a middleman matching moviegoers to theaters. But because they lose money on every customer, so they are financial capital intensive. 

I do think they are trying to oversell a little by saying they are (fixed) capital lite, leaving the part that they still require decent financial capital to fund for a while.  To be honest, some of these acquisitions could make sense as they are not buying these companies for earnings likely but for the dealer network that would take much more money to reproduce.  That being said I would much rather see them be profitable in their little niche.  When I see there acquistions, it makes me worried that management doesnt see as much value in their niche as the market does, and they are inorganicaly trying to grow into the market valuation. 

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 931
Re: RMBL - RumbleOn
« Reply #142 on: February 07, 2019, 10:38:32 AM »
Some of you may have seen the recent Alta Fox Capital presentation on this name. I think it's worth noting that the author is now less bullish.

https://twitter.com/AltaFoxCapital/status/1093566508389806083

gfp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1808
Re: RMBL - RumbleOn
« Reply #143 on: June 05, 2019, 06:43:58 AM »
So I went to check on this thing out of curiosity and see that they have stopped even putting the financial results in the quarterly earnings news releases!  Just a revenue number and some cheerleading...  Unbelievable -
https://investors.rumbleon.com/about-us/investors/News--Events/news-releases/press-release-details/2019/RumbleOn-Reports-First-Quarter-2019-Results/default.aspx

https://www.businesswire.com/news/home/20190513005890/en/

They've also raised another $36 million in expensive capital this month for their 'capital light' non-capital intensive business.

LFvalueseeker

  • Jr. Member
  • **
  • Posts: 51
Re: RMBL - RumbleOn
« Reply #144 on: June 05, 2019, 06:52:32 AM »
The company has changed dramatically and quite challenging to understand.  My original post explained my personal strategy on these microcap low float stocks.  I build a position and wait for its day/week/month in the sun.  Stock was a 100% gainer within months.  I don't think it's investable currently as they need to sort out market perception and it seems to be a failing knife.  Also, the attributes that were attractive (cap structure, underfollowed, etc) are no longer there.  I have been doing a bunch of work on Envision Solar (EVSI) and have started to build a position.  I have been reluctant to post my findings here as I was accused of being a promotional pumper on RMBL even though I clearly stated my personal investment behavior.  Microcaps have a distinct window to generate outsized profits, very very rarely do they become small or mid caps.  I would be happy to debate EVSI and gather consensus from this community if it were to be productive for all. 

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 931
Re: RMBL - RumbleOn
« Reply #145 on: August 21, 2019, 12:18:34 PM »
The company has changed dramatically and quite challenging to understand.  My original post explained my personal strategy on these microcap low float stocks.  I build a position and wait for its day/week/month in the sun.  Stock was a 100% gainer within months.  I don't think it's investable currently as they need to sort out market perception and it seems to be a failing knife.  Also, the attributes that were attractive (cap structure, underfollowed, etc) are no longer there.  I have been doing a bunch of work on Envision Solar (EVSI) and have started to build a position.  I have been reluctant to post my findings here as I was accused of being a promotional pumper on RMBL even though I clearly stated my personal investment behavior.  Microcaps have a distinct window to generate outsized profits, very very rarely do they become small or mid caps.  I would be happy to debate EVSI and gather consensus from this community if it were to be productive for all.

Stock is now at $3.67. So yeah, it literally had ~1 month in the sun last year.

writser

  • Hero Member
  • *****
  • Posts: 1925
Re: RMBL - RumbleOn
« Reply #146 on: August 21, 2019, 12:50:42 PM »
That's all you need. Please open a thread about EVSI. Your contributions in this thread were appreciated (from the sidelines though). Ignore the haters.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Spekulatius

  • Hero Member
  • *****
  • Posts: 3124
Re: RMBL - RumbleOn
« Reply #147 on: August 21, 2019, 03:23:42 PM »
The company has changed dramatically and quite challenging to understand.  My original post explained my personal strategy on these microcap low float stocks.  I build a position and wait for its day/week/month in the sun.  Stock was a 100% gainer within months.  I don't think it's investable currently as they need to sort out market perception and it seems to be a failing knife.  Also, the attributes that were attractive (cap structure, underfollowed, etc) are no longer there.  I have been doing a bunch of work on Envision Solar (EVSI) and have started to build a position.  I have been reluctant to post my findings here as I was accused of being a promotional pumper on RMBL even though I clearly stated my personal investment behavior.  Microcaps have a distinct window to generate outsized profits, very very rarely do they become small or mid caps.  I would be happy to debate EVSI and gather consensus from this community if it were to be productive for all.

Stock is now at $3.67. So yeah, it literally had ~1 month in the sun last year.

1 month in the sun is more than enough to cash in.
To be a realist, one has to believe in miracles.