Ben's avatar
$17.5m follower assets
LTCH
$LTCH making sure it can survive the “recession.” Decreasing spend and laying off about a third of its staff.

“The expected increase in operating efficiencies under this plan, in conjunction with the changes announced in May 2022, are expected to result in approximately $85 million to $95 million in total annualized operating savings once fully completed. Latch estimates annualized operating expenses and capital expenditures of $65 million to $75 million following the completion of these changes.”

$LTCH has 91 mil in cash, 173 mil in short term investments, and 71 mil in long term investments. It has no debt.

That’s 331 mil net cash. It now has 4.7 years of cash burn runway up from 2.1 years prior to restructuring.

Its market cap is ** 1**6**2 ** m**i**l. Not a typo. Which is 50% of its net cash
Josh Kohn-Lindquist's avatar
Massive if they can pull this off properly.

ATM, lower costs are far more important than wild growth for them -- especially trading with a MC below its net cash.

If it can somehow get to breakeven with that stream of sticky payments coming in over the long haul, $LTCH could be an incredible multibagger off of today's $1 price.

High-risk for sure, but I'd rather buy a few Latch shares than lotto tickets. 😂 That's kind of my frame of mind approaching this investment.
Modern Growth Investing's avatar
@joryko you have a better chance to make money on $LTCH than lotto tickets. I have briefly looked at the company and used their products. I think they are setup for success, they need better execution though, next 1-2 years will tell us a lot. No position but interested.
Ben's avatar
@joryko this post was for you Josh. I saw last week you where thinking about selling. I think their partnership with Tishmen Speyer gives them a high chance of success. And you can’t ask for a better margin of safety then selling for 1/2 of net cash and investments
Josh Kohn-Lindquist's avatar
@growthinvesting fully agree, next couple years will be pivotal — happy they look like they’ll get that time to prove themselves.
Josh Kohn-Lindquist's avatar
@rpinvestments Appreciate it a ton 🙏

Hadn’t yet gotten a chance to look at an update on them and this seems very reassuring — now just time to execute.

Reinforces my belief in trying to never sell.

Author

Related