Pandora
updated 2/5/18
Entry/Exit Point $4.50
52Wk Hi/Lo 4.44 - $13.72
P/E n/a
Profitable or string of losses? All losses for 3 years; narrowing
Current Ratio 2+ (good)(4.18 per Yahoo pg)
- Current Assets divided by Current Liabilities
- Rule of Thumb: 2 is considered adequate for manufacturers
LT Debt as a percent of capitalization 65%
- LT Debt / LT Debt + OE on balance sheet
Interest Coverage Ratio n/c (negative earning = no coverage)
- EBIT / I
- Rule of Thumb for Safety: 3-4
Insider Activity buying at $4-10
Short Interest 31% hi
Dividend no
News Headlines
- Google News
- Seeking Alpha
- ProQuest (1 year)
listening hours and ad-supported non-subscription users are down; therefore, ad growth not happening
https://www.cnbc.com/2018/01/08/pandora-shares-slip-after-morgan-stanley-downgrade.html
Cannibalization dynamic: switching ad-supported user to subscriber cuts ad revenue.
Adblock users don’t need to become subscribers.
Pandora would still run at a loss even if tripled subscribers
Pandora stalled out in 2014; Spotify is winning
https://seekingalpha.com/article/4135283-pandora-jump-ship-cannibalization-scares
WSJ 12/4/17
Pandora to Offer Free, On-Demand Music With Ads, similar to Spotify
users can pinpoint what they want
to give taste of subscription service
Most recent earnings press release
11/2/17
ads up, subscribers up, revenue up
widening net loss
$499M cash on hand
Bottom Line: INTERESTED AT $4.50
- update 2/5/18 - Pandora was at about $4.20 when I finished my research. I thought it would go a little lower, but it went up 10 straight days, instead. It's pulling back now, so $4.50 is a good entry point
- only way to play this is very short-term bounce
- company weak financially but won’t go belly up tomorrow (cash on hand)
- enough conflicting signals about growth to generate sine wave optimism and despair
- last 3 months: lower low’s and lower hi’s. will double-bottom form at $4 or will decline continue?
updated 2/5/18
Entry/Exit Point $4.50
52Wk Hi/Lo 4.44 - $13.72
P/E n/a
Profitable or string of losses? All losses for 3 years; narrowing
Current Ratio 2+ (good)(4.18 per Yahoo pg)
- Current Assets divided by Current Liabilities
- Rule of Thumb: 2 is considered adequate for manufacturers
LT Debt as a percent of capitalization 65%
- LT Debt / LT Debt + OE on balance sheet
Interest Coverage Ratio n/c (negative earning = no coverage)
- EBIT / I
- Rule of Thumb for Safety: 3-4
Insider Activity buying at $4-10
Short Interest 31% hi
Dividend no
News Headlines
- Google News
- Seeking Alpha
- ProQuest (1 year)
listening hours and ad-supported non-subscription users are down; therefore, ad growth not happening
https://www.cnbc.com/2018/01/08/pandora-shares-slip-after-morgan-stanley-downgrade.html
Cannibalization dynamic: switching ad-supported user to subscriber cuts ad revenue.
Adblock users don’t need to become subscribers.
Pandora would still run at a loss even if tripled subscribers
Pandora stalled out in 2014; Spotify is winning
https://seekingalpha.com/article/4135283-pandora-jump-ship-cannibalization-scares
WSJ 12/4/17
Pandora to Offer Free, On-Demand Music With Ads, similar to Spotify
users can pinpoint what they want
to give taste of subscription service
Most recent earnings press release
11/2/17
ads up, subscribers up, revenue up
widening net loss
$499M cash on hand
Bottom Line: INTERESTED AT $4.50
- update 2/5/18 - Pandora was at about $4.20 when I finished my research. I thought it would go a little lower, but it went up 10 straight days, instead. It's pulling back now, so $4.50 is a good entry point
- only way to play this is very short-term bounce
- company weak financially but won’t go belly up tomorrow (cash on hand)
- enough conflicting signals about growth to generate sine wave optimism and despair
- last 3 months: lower low’s and lower hi’s. will double-bottom form at $4 or will decline continue?
