Dark pool buying was detected in QRTEA stock on January 10, 2020. This is a straight up value play, oversold, buy on weakness thing that institutional traders do. This is a classic buy when there’s blood in the streets and no sane person wants this stock. Some large players appear to be doing the classic, position early with a lot of money and then hold it until it moves higher and then sell into the upward move so that retail chasers are the bag holders.
We think that the two dark pool prints were buy orders because of how QRTEA stock continued to go higher after the prints.
Value Stocks For 2020
There’s really no news catalysts that would explain the buying at this time. We think the QRTEA stock just got too cheap and so large players are stepping in to buy. This stock is my top Value Stock for 2020. Just how cheap is this stock?
It has a PE Ratio of 4.55. Compared to an average industry PE Ratio of 24.76, QRTEA stock is extremely cheap. QRTEA is cheaper than all other companies listed in the same industry!
QRTEA has a Price to Book Ratio of 0.74. Compared to an average industry Price to Book Ratio of 2.30, QRTEA is cheap. QRTEA is cheaper than all other companies listed in the same industry!
The company’s revenue growth is not bad.
QRTEA has a Quick Ratio of 1.14, and that’s why one of the reasons why the stock is so cheap. This is a bad value and indicates that QRTEA is not financially healthy enough and could have problems in meeting its short term obligations. However, on December 31, 2019, Qurate Retail (Nasdaq: QRTEA, QRTEB) announced the payment of a quarterly interest payment to the holders as of December 15, 2019 of the 1.0% Exchangeable Senior Debentures due 2043 (the “Debentures”) issued by its direct wholly-owned subsidiary, Liberty Interactive LLC (“LI LLC”). The amount of the quarterly interest payment is $2.50 per $1,000 original principal amount of Debentures. As of December 31, 2019, 900 Debentures remained outstanding in the aggregate adjusted principal amount of $772,994, after giving effect to today’s quarterly interest payment.
Under the Indenture for the Debentures, the original principal amount of the Debentures is reduced in an amount equal to each Extraordinary Additional Distribution made to holders of the Debentures. Thereafter, the adjusted principal amount is further reduced on each successive quarterly interest payment date to the extent necessary to cause the quarterly interest payment to represent the payment of an annualized yield of 1.0% of the adjusted principal amount. This latter adjustment, to the extent it is made by reason of a particular Extraordinary Additional Distribution that results in a reduction to the principal amount of the Debentures, takes effect on the second succeeding interest payment date after the payment of that Extraordinary Additional Distribution.
To date, LI LLC has made one Extraordinary Additional Distribution to holders of the Debentures. On March 19, 2015, LI LLC made an Extraordinary Additional Distribution of $134.5800 per $1,000 original principal amount of the Debentures resulting from the declaration and payment by HSN, Inc. (a subsidiary of QRTEA) of a special cash dividend of $10.00 per share to HSNi shareholders of record as of February 9, 2015.
The company has an Altman-Z score of 1.24 which is means QRTEA is in the distress zone and has some risk of bankruptcy.
This is what institutional investors do. They buy financially distressed companies they loaned money to in order to cash in on the book value if the company is liquidated, or if they believe a turnaround is possible, they will hold the stock until business improves again.
Qurate Retail, Inc. is comprised of eight leading retail brands – QVC®, HSN®, Zulily®, Ballard Designs®, Frontgate®, Garnet Hill®, Grandin Road®, and RyllaceTM (collectively, “Qurate Retail GroupSM”) – all dedicated to providing a Third Way to Shop®, beyond transactional ecommerce or traditional brick-and-mortar stores. Globally, Qurate Retail Group is #1 in video commerce, reaching approximately 380 million homes worldwide via 15 television networks and multiple ecommerce sites, social pages, mobile apps, print catalogs, and in-store destinations. In addition, Qurate Retail Group is among the top 10 ecommerce retailers in North America (according to Internet Retailer) and is a leader in mobile commerce and social commerce. Qurate Retail, Inc. also holds various minority interests and green energy investments.
What’s Next? Make Sure To Review This Lesson On Dark Pool Trading!