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Trade Update: Covering ROVR and COOK
www.overlookedalpha.com

Trade Update: Covering ROVR and COOK

A quick update on two short ideas from November

Vince Martin
Jan 20
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Trade Update: Covering ROVR and COOK
www.overlookedalpha.com

We're closing our short calls for Rover ROVR 0.00 and Traeger COOK 0.00, and I've personally covered my short in COOK. 

Our thesis on COOK — that it had rallied based on illogical enthusiasm toward the proposed buyout of peer Weber — has played out. COOK has declined 33% to finish regular trading Thursday at $2.74. That’s reasonably close to our $2.50 estimate of fair value, and close enough in this still-volatile market to take profits.  

For ROVR, we wrote in our November call that we weren't looking for a home run, but rather to scalp a short-term run that had left the stock overvalued. The stock since has dropped 28%.

One of the points we made in that piece was that, despite being a pet-sitting company, ROVR is more of a travel stock than a pet stock. With travel demand still intact — at least judging by strong Q4 earnings reports from major U.S. airlines — risk/reward here looks much more balanced.

Both stocks may still have downside going forward, particularly if the broad market weakens further. We’re certainly not swinging bullish on either name. But in this market, there appear to be better opportunities elsewhere — both long and short — to deploy capital.


As of this writing, Vince Martin has no positions in any securities mentioned.

Disclaimer: The information in this newsletter is not and should not be construed as investment advice. Overlooked Alpha is for information, entertainment purposes only. Contributors are not registered financial advisors and do not purport to tell or recommend which securities customers should buy or sell for themselves. We strive to provide accurate analysis but mistakes and errors do occur. No warranty is made to the accuracy, completeness or correctness of the information provided. The information in the publication may become outdated and there is no obligation to update any such information. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Contributors may hold or acquire securities covered in this publication, and may purchase or sell such securities at any time, including security positions that are inconsistent or contrary to positions mentioned in this publication, all without prior notice to any of the subscribers to this publication. Investors should make their own decisions regarding the prospects of any company discussed herein based on such investors’ own review of publicly available information and should not rely on the information contained herein.

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Trade Update: Covering ROVR and COOK
www.overlookedalpha.com
1 Comment
Romain Faure
Jan 20

Awesome ! Closing here as well - thank you 👍

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