Follow the Cheese

Published on
June 3rd, 2019
7 minutes

Follow the Cheese

Trade Ideas ·
Featuring John Jannarone

Published on: June 3rd, 2019 • Duration: 7 minutes

John Jannarone, editor in chief of IPO Edge, highlights the bull case for CEC Entertainment, the parent company of Chuck E. Cheese's, and reviews how to make the play through a particular SPAC: Leo Holdings Corp. He highlights the company’s valuation and key fundamentals, notes what investors should pay attention to, and breaks down the trade idea, in this interview with Jake Merl. Filmed on May 30. 2019.



  • JM
    Jim M.
    5 June 2019 @ 14:14
    Lots of "thumbs up" votes but nobody has bought the stock. Strange.
  • AH
    Andrew H.
    4 June 2019 @ 14:26
    When are we going to get an update on IPIC, that seems like a reorg/recap brewing.
  • JS
    Jerad S.
    4 June 2019 @ 04:14
    I like this a lot. However, what we are talking about it seems is a private equity deal and from what I hear the private equity market is bloated and people are overpaying for things. Players like Apollo, Blackrock, Softbank, Berkshire, and more. LHC appears to be a small private equity company w/o non-cash assets looking for a small play of around $250 million. I like the CEC play, but what is LHC's edge? What would be a good price for CEC? It is unclear how much controlling interest LHC will purchase from FINMF/ Queso holdings(Apollo). Valuation: guessing at based on Q1 numbers, net annual income of $100 million. A price of $250 million would be 2.5x and a spectacular deal. However, it is unclear how much of the company they are purchasing.
    • AW
      Aaron W.
      4 June 2019 @ 08:09
      Agree. Wasn't Mr. Cohodes getting ready to do a big exposé of Apollo and Blackrock? I don't trust any private equity deals. Same store sales numbers are easy to goose. Obviously Apollo is going to throw any money necessary to guarantee SSS #s grow ahead of the deal.
  • LE
    Loui E.
    4 June 2019 @ 02:42
    Rocking with iPiC! U piC. Yr of piG!
  • NR
    Nelson R.
    3 June 2019 @ 22:27
    I like the arcane stuff John brings to RV. Shedding light on some dark corners of the market and opportunities. Nice presentation.
  • MN
    Michael N.
    3 June 2019 @ 06:47
    like this dude