gfp Posted September 13, 2018 Share Posted September 13, 2018 Thanks. Weird to put the logo of what could be considered a chief competitor on your homepage. They've had the eBay logo since earlier this year (at least 3/2018). They did sell a few bikes on eBay, but I don't believe they use it anymore. Link to comment Share on other sites More sharing options...
doughishere Posted September 13, 2018 Share Posted September 13, 2018 hey also, heres an interview with Chesrown. im probably responsible for all of the viewer count so far. Link to comment Share on other sites More sharing options...
landstander Posted September 13, 2018 Author Share Posted September 13, 2018 Cool, Thanks! The CEO was also on a separate podcast on 8/21/2018 that was more focused on his perspective and background - https://fromfoundertoceo.com/246-marshall-chesrown/ Link to comment Share on other sites More sharing options...
Ismael Posted October 9, 2018 Share Posted October 9, 2018 Announced 100,000 cash offers. Should put them above $25M in Rev for the quarter. Link to comment Share on other sites More sharing options...
LFvalueseeker Posted October 11, 2018 Share Posted October 11, 2018 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. Link to comment Share on other sites More sharing options...
cameronfen Posted October 11, 2018 Share Posted October 11, 2018 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. Link to comment Share on other sites More sharing options...
LFvalueseeker Posted October 11, 2018 Share Posted October 11, 2018 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. Link to comment Share on other sites More sharing options...
gfp Posted October 26, 2018 Share Posted October 26, 2018 Interesting - https://investors.rumbleon.com/about-us/investors/News--Events/news-releases/press-release-details/2018/RumbleOn-Enters-into-Definitive-Agreements-to-Acquire-Wholesale-Inc-and-Wholesale-Express-LLC/default.aspx I guess 100m in 2018 revenue is now $70-85 million in 2018 revenue? Is that the updated guidance? Link to comment Share on other sites More sharing options...
landstander Posted October 26, 2018 Author Share Posted October 26, 2018 Yes. In Q2 they were estimating $100+ million for 2018 revenues. A significant drop. And while margin was higher than I expected, revenue was lower. Haven't looked through the details and will be interested to hear the reasoning behind an expansion rather than focusing on the core business on the conference call later today. Link to comment Share on other sites More sharing options...
Ismael Posted October 29, 2018 Share Posted October 29, 2018 Their offer conversion rate and average sales price is coming in lower than previous quarters. Will be interesting to see where the equilibrium settles. Nice that the margin is expanding. Still showing strong growth too. Entering adjacent markets (both organically and acquisitively) makes sense. Internet markets tend toward winner take all so hope they continue to spend aggressively to acquire customers and build a brand. With the addition of Joe Reese I wonder if there is more industry consolidation in store… Link to comment Share on other sites More sharing options...
cameronfen Posted October 29, 2018 Share Posted October 29, 2018 Their offer conversion rate and average sales price is coming in lower than previous quarters. Will be interesting to see where the equilibrium settles. Nice that the margin is expanding. Still showing strong growth too. Entering adjacent markets (both organically and acquisitively) makes sense. Internet markets tend toward winner take all so hope they continue to spend aggressively to acquire customers and build a brand. With the addition of Joe Reese I wonder if there is more industry consolidation in store… Just some random thoughts. Responding: I rather them be a big fish in a small pond than a small fish in a big pond (or many ponds which is even worse). That being said, deal probably had good synergies and didn't look too expensive either. More thoughts: Even the low end of their guidance seems optimistic and it implies qoq revenue acceleration from 42% to 50%. I think current growth is fine and I think management is trying to split the difference with the way to optimistic previous guidance (in hindsight, I drank the cool aid before). That being said, they could easily juice up revenue by sacrificing margin (through giving higher apprasals) and it is nice (I think) to see they arent doing that. Link to comment Share on other sites More sharing options...
LFvalueseeker Posted October 29, 2018 Share Posted October 29, 2018 I am chiming in so I don't get accused of disappearing. I am still trying to understand this acquisition. After a bit of time, I believed I had a firm grasp on the motorcycle market and all the aspects that made it interesting from an investment angle. I am trying to understand the used auto market landscape and how Wholesale fits in and does 1+1=3 through the combination with RumbleOn. Interested in other peoples thoughts. Link to comment Share on other sites More sharing options...
gfp Posted October 30, 2018 Share Posted October 30, 2018 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? Link to comment Share on other sites More sharing options...
gfp Posted October 31, 2018 Share Posted October 31, 2018 New board member Joe Reese bought some stock from the company and some more in the open market - https://www.sec.gov/Archives/edgar/data/1596961/000165495418011782/xslF345X03/section16.xml edit - another director buying in both the PIPE and the open market - https://www.sec.gov/Archives/edgar/data/1461836/000165495418011885/xslF345X03/section16.xml Link to comment Share on other sites More sharing options...
fishwithwings Posted January 28, 2019 Share Posted January 28, 2019 Has anyone own, or have access to a motorcycle that they could get a purchase offer from RMBL for? Or maybe someone has already done this and would be willing to share the #s? I am very interested in how their offers compare to Kelly Blue Book pricing. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted February 6, 2019 Share Posted February 6, 2019 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 Link to comment Share on other sites More sharing options...
cameronfen Posted February 6, 2019 Share Posted February 6, 2019 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. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted February 7, 2019 Share Posted February 7, 2019 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 Link to comment Share on other sites More sharing options...
gfp Posted June 5, 2019 Share Posted June 5, 2019 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. Link to comment Share on other sites More sharing options...
LFvalueseeker Posted June 5, 2019 Share Posted June 5, 2019 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. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted August 21, 2019 Share Posted August 21, 2019 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. Link to comment Share on other sites More sharing options...
writser Posted August 21, 2019 Share Posted August 21, 2019 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. Link to comment Share on other sites More sharing options...
Spekulatius Posted August 21, 2019 Share Posted August 21, 2019 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. Link to comment Share on other sites More sharing options...
A Dhandho Investor Posted January 10, 2020 Share Posted January 10, 2020 Double announcement by the company yesterday. Stock drops pre-market to 60 cents. https://investors.rumbleon.com/about-us/investors/Company-News/press-releases/press-release-details/2020/RumbleOn-Inc-Announces-Proposed-Public-Offering-of-Its-Class-B-Common-Stock/default.aspx https://investors.rumbleon.com/about-us/investors/Company-News/press-releases/press-release-details/2020/RumbleOn-Announces-Certain-Preliminary-Results-for-Fourth-Quarter-2019-and-Reiterates-2020-Outlook-and-Long-Term-Expectations/default.aspx Link to comment Share on other sites More sharing options...
hillfronter83 Posted March 15, 2021 Share Posted March 15, 2021 RMBL is merging with RideNow. The stock is valued at $30/share for the transaction. At current price of around $50/share, it's trading at about 8 times projected 2021 EBITDA. Link to comment Share on other sites More sharing options...
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