r/wallstreetbets
Hedge Fund fav trade long Semis short software is blowing up
Bets on ZoomInfo (ZI) short squeeze as funds unwind semi/software trades, citing ZI's low valuation and debt-covering cash flows.
- Hedge funds degrossing long semi/short software trades forces short covering.
- ZI is extremely cheap with limited downside priced in.
- Projected $1.1B cash flow covers all debt, eliminating bankruptcy risk.
- The underlying business and product are fundamentally disliked.
- Downside risk remains if conservative financial estimates are missed.
- High debt load poses a risk if cash flow generation stalls.
NOTE: 85% of my Net Worth is tied to this software company. Its down -99% from highs and -75% only this year. I hate the business and would never use their product. But if I am right, it will make me rich. Also, you're insane if you're listening to a dude obsessed with a psychology experiment.
Long semi/ short software is blowing up. I watched as my friends and their friends make millions in this trade. Music stops now. They are degrossing. Means selling semi's and covering shorts on software, effectively buying. So what did I do? Found the cheapest software stock.
Zoominfo is the cheapest, most hated, discarded left for dead software stock. No one even wants to look at it. It's kinda like me in highschool. But does GTM go bankrupt in 30 months? No chance. Is there downside to already conservative numbers? Maybe. But check the chart, what's not already priced in?
They have $1.1bn in debt, and will generate $309, $324, $366m in cashflow (total $1.1bn) in 2026-2028. I am betting everything I have that a company that generates the entire debt in next 30 months cannot possibly go bankrupt.
I am buying shares. Looking at options too but I am too retarded to figure that out. This thing will go to $7.5 to $10.