After March earnings the stock jumped from high 80’s to $110 and after the latest earnings It is now back below $80. I think the stock is heading towards $60, if not at least towards $70. I am not suggesting buying puts, rather, be prepared if you like the stock to buy around that price.
At that price the valuation will come to < 5x. Currently there is $2.3 B cash in the balance sheet, $1.1 B in debt. I think the debt is related to the convertible bond they have issued during 2020, I am quoting from memory and need to check that.
So the cash on the balance sheet is primarily to run the business and pay back the convertibles, since I am not expecting them to be converted into shares.
Alternatively, if you like it at $60/70, SELL puts with a strike price of $60 or 70. If it hits $60/70 and stays there for a while, you will likely buy the stock at $60/70 (minus the premium you got when selling the puts). If the stock doesn’t reach that point, you simply keep the premium you received.
I haven’t recently looked deep into this name. While I have a general idea, I need to have lot more conviction for me to sell the puts. Having said that, I am trying to preserve my margin capacity for any dip between now and election.