The News Radar

Timely links to external news and articles, usually valuation related, with occasional commentary.

Originally posted Friday, 10 June 2022
Redbox Is Fun to Meme

We talked last month about Redbox Entertainment Inc., a company that (1) went public in October 2021 by merging with a special purpose acquisition company at $10 per share, (2) traded as high as $17.93, (3) then traded down to $5.60, (4) then agreed to be acquired by Chicken Soup for the Soul Entertainment Inc. for about $0.69 per share in stock, an 88% discount to its trading price, and (5) then traded down to $2.58 per share. That was weird!

Incredible stupidity that must be read to be believed. I just cannot stomach that this is the world we live in. This is a picture perfect arbitrage scenario, but it's actually too risky to arbo because retail meme traders are collectivly more stupid than the market has liquidity to bear.