– Liquidation play with management committed to selling their last and best asset by the end of October.
– Liquidation estimates in the range of $0.35-1.7/share vs $1.7 current price.
– Other assets have been divested recently.
– The remaining asset is Fullstack Academy – coding bootcamp, for which ZVO paid $38m back in 2019.
– It’s growing revenues at 35% YoY and could be worth between $50m-$100m.
– Assuming Fullstack is sold at the 2019 purchase price, equity recovery would be $0.35/share, or 30% return.
– An optimistic scenario at 3x revenue sale price would result in a $1.7/share liquidation value.
Exp. gain: 30% – 500% in short term.
Full ZVO write-up (free guest account required):