Author Topic: RMBL - RumbleOn  (Read 17132 times)

cameronfen

  • Full Member
  • ***
  • Posts: 229
Re: RMBL - RumbleOn
« Reply #130 on: October 11, 2018, 09:33:48 AM »
So are you out of the stock LF?  I've still got 100 shares left.

Anybody know why they have an eBay motors logo on the homepage now?  Are they selling bikes on eBay motors?

I took some profits around $10.10 average.  Sold 80K of 100k shares.  Stock was up 10+ days straight.  I am long 33,000 shares and adding on any weakness.  Q3 numbers should be ~$25m based on the 100,000 offer announcement.  Also Joe Reece joining is interesting.  Serious experience in M&A and CST Brands was acquired/merged in a $4.4b transaction shortly after he joined that board.  I am in no way implying the same value here.  I believe he was strategically brought on board for a variety of potential reasons.

I'm of the belief that as long as the multiple is within reason, and the position is not sleep at night too large, you really have to hold these stocks. These types of stocks at inflection points are difficult to value.  I did trim my position which wasn't enormous to begin with, but if you dont hold on like after a double you are going to miss the 5% of stocks that are 5+ baggers, and considering 30% of these types of stocks the growth or profitability never comes and the stock goes down 25+%, you can't get a good return (maybe as good a return) if you dont have a possibility of a big right tail winner. 

I guess I should add, I only have 5% of my portfolio in this.  I'm not really responding to LFinvestor, but to the people that sell out after a quick double.  again everything imo and not a recommendation to do anything.
« Last Edit: October 11, 2018, 10:04:12 AM by cameronfen »


LFvalueseeker

  • Newbie
  • *
  • Posts: 49
Re: RMBL - RumbleOn
« Reply #131 on: October 11, 2018, 10:10:13 AM »
So are you out of the stock LF?  I've still got 100 shares left.

Anybody know why they have an eBay motors logo on the homepage now?  Are they selling bikes on eBay motors?

I took some profits around $10.10 average.  Sold 80K of 100k shares.  Stock was up 10+ days straight.  I am long 33,000 shares and adding on any weakness.  Q3 numbers should be ~$25m based on the 100,000 offer announcement.  Also Joe Reece joining is interesting.  Serious experience in M&A and CST Brands was acquired/merged in a $4.4b transaction shortly after he joined that board.  I am in no way implying the same value here.  I believe he was strategically brought on board for a variety of potential reasons.

I'm of the belief that as long as the multiple is within reason, and the position is not sleep at night too large, you really have to hold these stocks. These types of stocks at inflection points are difficult to value.  I did trim my position which wasn't enormous to begin with, but if you dont hold on like after a double you are going to miss the 5% of stocks that are 5+ baggers, and considering 30% of these types of stocks the growth or profitability never comes and the stock goes down 25+%, you can't get a good return (maybe as good a return) if you dont have a possibility of a big right tail winner.

I agree with everything you're saying, however I still have scars from a few positions I was big in and watched all the profits fade away.  I was a bit over my skis on this position from the beginning and watching it go from $4.25 to $10.00, I wouldn't sleep at night if I didn't adjust the position size.  It is now a properly sized position for my portfolio.  My biggest issue with microcaps is unsophisticated mgmt teams that do really dumb things.  I was caught off guard on the capital raise RMBL did and thankfully it worked out and was the right decision.  I have been a shareholder of some incredible companies that have destroyed value through a variety of poor financings and ill advised capital markets decisions.  I have become more disciplined to take significant profits but it's mentally tough to watch winners continue to go up.