QRTEA

Qurate Retail Inc - Ordinary Shares - Series A

TMT


Presented:07/26/2023
Price:$1.04
Cap:$0.49B
Current Price:$0.60
Cap:$0.24B

Presented

Date07/26/2023
Price$1.04
Market Cap$0.49B
Ent Value$7.16B
P/E RatioN/A
Book Value$1.49
Div Yield0%
Shares O/S474.22M
Ave Daily Vol9,182,368
Short Int4.24%

Current

Price$0.60
Market Cap$0.24B
Qurate Retail, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Qurate Retail Inc (QRTEA)

Highlights

The presenter is long shares of Qurate Retail Inc (QRTEA), which owns QVC and the Home Shopping Network. These brands have TV shows that display merchandise and work with vendors to sell products. The business has been around for decades but its core demographic of middle age/elder women is aging out. QRTEA has been declining since 2019 and is heavily levered and distressed. It has been a value trap in the past, and the market seems to think the company will declare bankruptcy by the time its $3.25B revolver comes due in 2026. While he is unwilling to ascribe any certainty that the business will recover to the point that it will avoid bankruptcy over the long term, there are several levers that can extend the life of the business and cause the equity to rerate. On this basis, the company’s equity seems like a cheap option at the current $1 per share with upside to $2. 

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Idea Discussion

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