Short Kings Capital

Below Avg Height, Above Avg Returns

[low yield lucy @picotop]

spending Valentine’s Day with a 5’7” hedge fund guy.

he’s my short squeeze 🥰

[Short Kings Capital @ShortKingsCap]

$GO posted a rotten quarter as expected, and the stock is down big as the unit growth story cracks further. However, there are still elements to the short thesis that are underappreciated:

1) Regional competition: East coast competition for closeout grocery is way more intense than on the west coast and GO has only alluded to the sales impact of this.

2) ERP transition is old news: ERP transition created a critical failure for purchasing in '23. Most of that is in the past, but they keep bringing it up to cover up.

3) Spoiler Alert: Nail in the coffin for gross margins on closeouts going forward. Nobody's talking about this. Google it.

Wishing Jason the best of luck.

[Short Kings Capital @ShortKingsCap]

Consider the impact of this trend on digital transformation & software engineering firms (e.g., $CINT $DAVA $EPAM $GLOB). With fewer full-time openings, are there fewer RFPs (requests for proposals) for part-time, consultant-related work? Likely.

[Short Kings Capital @ShortKingsCap]

@AplDiscussions What do folks think of the performance here?

[Short Kings Capital @ShortKingsCap]

@LeanDotOrg Great to see a DX company being proactive in changing their operational style to drive growth.

[Short Kings Capital @ShortKingsCap]

@trueNorthIT @techradar Great highlighting this! Curious to know the rate at which digital transformation targets are increasing and the rate at which digital leaders find that they've been able to unlock budgets meet their targets in the past.

[Short Kings Capital @ShortKingsCap]

@Clearingfog_ My sense is the case studies in investor presentations and earnings call transcripts offer examples of nirvana engagements. Further diligence required to determine the average engagement for these cos (e.g., rev/head adj for utilization, frequency of cast study pub)