We break down a short idea from Seeking Alpha contributor BOOX Research on this week's Behind the Idea. The stock? Cars.com (CARS), a legacy media company spun off and trying to make it in a competitive web-driven world. The multiple is low, but is it low enough?
Topics covered:
3:00 minute mark - The increasingly competitive climate 8:00 - What is the revenue decline really a sign of? 11:30 - Cars.com's moves 15:30 - The Campbell Soup (CPB) cautionary tale 23:30 - The recent DealerInspire acquisition 25:30 - Secular issues facing Cars vs. cyclical issues facing Cars (and cars) 31:30 - Revisiting Cars at its spin-off two years ago 38:00 - Is any price low enough? 45:00 - Blindspots in the short thesis