Groove Update – JRJR Holdings at 26% of Float
As of the open on March 14, Groove investors control over 26% of the public float of JRJR Networks shares. Discussions among several Groove participants who closely monitor the daily trading of JRJR’s stock lead to the unanimous conclusion that the trading since last Monday’s cusip change could not have put much of a dent in the outstanding short position, naked or otherwise. The NYSE Market updated the REPORTED short interest after the close of Trading on Thursday, showing a near 20% increase in the short interest to 345,277, very close to the all time high for CVSL / JRJR. Thus, the number of shares sold short appears to be increasing and the shares available in the public float that are not owned by Groove participants is rapidly decreasing.
A member of the Groove community got the opportunity to speak with JRJR chairman and CEO John Rochon last week about the YIAH spinoff proposal. While he was not willing to commit to such a move at this juncture, he was very open minded to investigating the possibility of such an offering and his comments reflected a keen awareness of the fact that the extraordinary value that has been created in YIAH is still not reflected in JRJR’s stock price. Given the revenue multiples and valuations of the most recent VC rounds of other players in the space, YIAH alone would be worth more than double the entire enterprise value of JRJR at Friday’s closing price of $1.54 per share, meaning an investor at these prices gets a piece of YIAH for 50% off of the venture capital valuation plus Agel, Longaberger, Kleeneze and Betterware for free. For those who are counting, those last four companies are fairly well established (average operational life span of over 50 years old) and have an annual revenue run rate in the $150 million range.
Entry filed under: micro cap, micro cap short squeeze, short squeeze, small cap, Uncategorized. Tags: Agel, Betterware, Blue Apron, Caspi, cusip change, CVSL, Hello Fresh, John Rochon, JRJR, JRJR Networks, Kleeneze, Longaberger, Reg A+, YIAH, Your Inspiration at Home.