OPEN Table

November 4, 2010

Great business model. Recurring sub rev with upside potenial on the reservation per table fee. Large potenial market. Excellent penetration in last few years. Fast growing easy to understand tech company.

This one has been going up and up and is trading at an absurd 65x EBITDA. Huge market cap bur very little cash-flow. A hedge fund T2 is promoting a short on the basis that even if they hit 100% of addressable market market (ballpark 90k reservation taking restaurants worldwide) at today’s revenue rates, they’d be worth something like 50% of today’s price. Can’t recall all the numbers but it’s a strong argument.

Although, these momentum trades seem to last longer than most analyst expect.

ANT is not yet putting on it’s first real short but is thinking this could be a good one.

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