Monday, 17 July 2017

APRN - the CEO remains on radio silent

Whilst the main market saw a day of minor chop, there was renewed powerful downside in Blue Apron (APRN), which settled -10.5% at $6.59. Near term outlook offers the $5s, as Mr Market has a profound contempt for this newly listed stock.

APRN, daily


There are many dubious issues surrounding this company, not least the issue of voting rights for shares...

Enjoy this little flashback story, when most thought the company could find interested buyers around $15 a share...

So... lets be clear, 30 million class A' shares (1 vote each)...  sold for $10....  $300 million, yet...another 157 million shares, but those have 10 votes each! Talk about crony capitalism!

As for the CEO...


The CEO remains on radio silent mode. Is that a requirement of the recent IPO ? I've heard nothing that suggest he has to remain mute on what is an absolutely disastrous IPO.

My questions to Salzberg...

1. Where are you hiding?
2. How could you possibly justify selling shares with grossly unbalanced voting rights?
3. How long until you ask the capital markets for more money, 3mths, 4, 5, or 6?

4. Do you ever aspire to make a profit, or do you follow the TSLA, NFLX, and AMZN business model?
5. How about selling Blue Apron to AMZN, I'm sure they could merge it quickly within their new subsidiary of Whole Foods?

6. Are you worried about any lawsuits from angry retail amateur 'investors' ?

Seriously, APRN has been one hell of a stock to follow, and its only seen 12 trading days. The psy' level of $5.00 would make for a viable short term floor before end month... but even then.. what kind of maniac would get involved in such a stock?

To be clear, yours truly likes the product/service, but its a loss making company, no dividends, and will surely need new capital before year end. Outlook has to be bearish.