DS

Drive Shack Inc

Consumer


Presented:02/16/2018
Price:$5.17
Cap:$0.35B
Current Price:$0.14
Cap:$0.01B

Presented

Date02/16/2018
Price$5.17
Market Cap$0.35B
Ent Value$0.28B
P/E RatioN/A
Book Value$2.01
Div Yield0%
Shares O/S66.93M
Ave Daily Vol540,298
Short Int4.21%

Current

Price$0.14
Market Cap$0.01B
Drive Shack, Inc. engages in golf-related leisure and entertainment businesses. It operates through the following segments: Traditional Golf properties, Entertainment Golf venues, Debt Investments, and Corporate. The Traditional Golf properties segment operates and owns golf properties. The Entertainment Golf venues segment plans to open a chain of gold, competition, dining, and fun. The Debt Investments segment consists primarily of loans and securities which the company plans to monetize as part of its transformation to a leisure and entertainment company. The Corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, etc. The company was founded in June 2002 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Apollo Global Management LLC (APO), Callaway Golf Co (ELY), Drive Shack Inc (DS), Fortress Investment Group LLC (FIG)

Highlights

It has taken years for Drive Shack (DS) to evolve from its commercial mortgage REIT beginnings (Newcastle was formed in 1998), but today DS is a focused owner-operator of golf-related leisure and entertainment businesses. The presenter is bullish on the outlook for the stock, and views it as potentially meaningfully undervalued given the optionality around DS’s plan to open a number of Topgolf-like facilities over the next 12 - 18 months (the first of which is scheduled to open in Orlando, FL, by the end of March 2018). Recent M&A activity and Callaway’s investment in Topgolf lead the presenter to the conclusion that DS shares could double - from just over $5 today ($346MM market cap) - if management can execute on its expansion plan.

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Idea Discussion

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