Zovio (ZVO), mcap=$6m, price $0.16 vs $0.27

$ZVO pitch:
– 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.

$ZVO valuation:
– 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):
https://www.valueinvestorsclub.com/idea/ZOVIO_INC/9970421982

Published on: October 17, 2022  •  Published by:
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