Chris Colvin thinks Veritas is stealing $HMHC
Chris Colvin returns to the podcast to discuss why he invested in Houghton Mifflin Harcourt (HMHC) and why he thinks the deal to sell HMHC to Veritas is much too cheap.Breach Inlet's letter to HMHC: https://www.businesswire.com/news/home/20220223005845/en/Breach-Inlet-Capital-Sends-Public-Letter-to-Board-of-Houghton-Mifflin-HarcourtMy notes on HMHC: https://twitter.com/AndrewRangeley/status/1503704685861273604?s=20&t=BJwJj9NIUfEf4nip2Hlf4wChapters0:00 Intro1:15 HMHC Overview6:45 Situation Recap9:00 Why does Chris believe this deal is too cheap?13:05 HMHC's strange forecast and massive revision19:35 HMHC's advisors conflict of interest22:55 Why did management and the board chose to sell the company now?28:00 HMHC's roll up potential31:25 Veritas's other edtech plays33:35 How does this play out from here?34:05 What if the tender fails and Veritas walks away?49:00 Did HMHC's projections undersell the stimulus money impact?51:00 Closing thoughts