We believe Landcadia (LCA), which should complete its SPAC merger with Waitr during the 1st or 2nd week of November, represents a compelling, under the radar screen, opportunity for growth investors playing the offline to online restaurant delivery trend.
We see 50%-100% upside to shares over the next 6-12 months. For those with a less bullish stance on the sector, valuations, or macro/broader economic concerns, we recommend a pair trade with far slower-growth (although high-growth), more highly valued, GrubHub (GRUB) which has both low short-interest and a low borrow-rate. Catalysts include: Closing of the SPAC merger in 1H November, 2018 guidance raise when company reports 3Q, sell-side coverage, and tender or warrant (LCAHW) exchange soon after transaction close.
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