Red Flag Alert – Hiding in the Open

I have to hand it to Symbotic SYM 0.00%↑ , which makes warehouse automation systems and went public a few years ago via a SPAC...

Management isn’t merely hiding in the open, but is leaning into it.

The whole thing is clever to the point of being brilliant.

The big question is... does it matter?

That’s impossible to say, and maybe management will shed more light on it during its Investor Day tomorrow.

What I do know is this: This is happening at a company with high customer concentration that can’t seem to hold onto a CEO and for some continued with plans to take the SPAC route to the public markets.

No surprise, perhaps that both the CEO and CFO, who were there during the 2022 IPO, have since left. That CEO – the fourth since 2011 – stayed a mere eight months, and was replaced by the person he replaced – founder Rick Cohen.

Red Flagged

With all of this as a backdrop, I’m adding Symbotic to the Red Flag Alerts.

The issue here, which has snared my attention, is a curious related party dealing.