Molson Hart

Thanks again. Agree w MH: WW buys wholesale, sells retail (w a massive asset-liability mismatch). I do not see how they can buy cheaper or sell more dear. Overhead, marketing, sales? maybe. If it was such a great model, they'd be making money AND the guy would not be buying bldgs

Yikes, did not know that the CEO was personally buying buildings and then leasing them back to the company he's running. Gross. https://www.wsj.com/articles/weworks-ceo-makes-millions-as-landlord-to-wework-11547640000 …

This conflict of interest strikes me as indefensible tho perhaps there are exculpatory details. Re goog a better Quality Score is a huge advantage...it’s worth exploring if you’re unfamiliar...ties to underrated genius of goog using ctr in AdWords.

Yeah, but quality score and scale are not really highly correlated! And...[all the points I made before]

Yes they are strongly. correlated. Amazon and eBay have big cost advantage in ppc. Similar competitive advantage in SEO.

Yeah, but that's not scale. Suppose I operated the premiere, best experience, bee-keeping e-commerce website. My quality score will be excellent. This has nothing to do with the size of my operation.

to me, the red flags are (1) they are not making $ w U/E for college grads at 1.9% after XX yrs in biz/YYY bldgs, (2) the guy is moving up in the seniority claims personally... equivalent of bill gates starting a PC biz... (3) A/L mismatch. All else is noise.