re: Let’s discuss WTRH in this thread

$.27

quote:

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Seems like a huge overreaction.

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1 - CEO/Founder – moved to “Chairman” and out of CEO role

2 – COO (top level executive from Bite Squad) left company in September

3 - CFO just left the company

4 - Two directors just left the company

5 - Stock in danger of being de-listed because of price and items 3 and 4 (above)

6 - Getting out of several underperforming markets (38 have been announced) even though the size of those markets are their “target” markets

7 – lawsuit(s) from drivers

8 – Class action suit(s) being filed and the basis for those suits are as follows:

Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Waitr was not on the verge of profitability; (2) Waitr was not providing its services at a sustainable low take rate established at 15%; (3) Waitr was unable to extract efficiencies from its full time fixed-rate labor force that was purported to allow the Company to offer its services at a lower rate than competitors; (4) its software provided little or no competitive advantages and what first-mover advantage Waitr claimed existed, was quickly squandered by the inability to obtain sophisticated high-level programmers and software engineers who could enable Waitr to refine and develop the software necessary to stay competitive in its market; (5) Waitr did not maintain an adequate system of internal controls so as to report and eliminate material conflicts of interest; and (6) as a result, Waitr's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

9 - $220M loss in Q3 and $190M of that was charges related to the botched Bite Squad purchase

10 – Burned through $20M in cash in Q3 and only has $52M left (and a long way from making a profit)

11 - Major competitor (Grub Hub) stock lost 40% in one day based on their last earnings report

12 – Announced this week the layoff of 300 workers. While not a bad thing given their cash burn, there must be some serious talent drain within those numbers. The layoff numbers include cutting half of their sales force which will likely result in slower revenue growth

Hopefully Drew Brees got his initial $10M back