schnuddel/E+ via Getty Images Irrational Drop Presents an Opportunity On March 3nd, 2023 Bumble ( NASDAQ: BMBL ) announced a secondary share offe ring of 13.75Mn shares, plus an optional 2.06Mn shares by its largest investor Blackstone’s affiliates and founder Whitney Heard at $22.80 per share. Of these, Heard’s share is 1.75Mn shares and after the sale, her holding reduces from about 13.5% to 12.2% and Blackstone’s (along with its affiliates) from about 39% to 30%. Most importantly, there is no dilution to Bumble’s shareholders, no new shares issued nor any of the proceeds go to Bumble. I can’t emphasize this enough. This was a shelf offering from the time of its IPO and it is from existing shareholders to new shareholders. The markets have completely overreacted, pummeling the stock down by 20% to $19.50 today from $24.50 on March 2nd. I had recommended Bumble as a Buy on Feb 11th, 2023 for the following reasons, summarized below: Founder running the company and creating a new category – Whitney Heard, also co-founded Tinder, and started this passion project creating an entirely new category – Women First, which is a now a huge moat. Duopoly – The smaller part of […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
