Bearish on SCHLFundamentally, I think SCHL should be taking a beating like the hotel and airline stocks.(dropping like 50-75%)
What is SCHL?
Scholastic Corporation is an American multinational publishing, education and media company known for publishing, selling, and distributing books and educational materials for schools, teachers, parents, and children. Products are distributed to schools and districts, to consumers through the schools via reading clubs and fairs, and through retail stores and online sales.
Why?
Because NYC schools just announce a full year shut down over the weekend. this is huge. it will set a precedent for other cities to follow imo.
In addition to that, SCHL has been super backwards. although they have made a website, a lot of the way they sell and make money is still old fashion.
they focus on school book-fairs to generate sales, sales rep marketing the catalog and materials to teachers (FACE to Face meeting) to generate sales.
then in-turn, the teachers will market it to student (FACE to Face meeting) in the class room.
The point is, a lot of that will be f2f, in person, which would require the school to be open.
in addition to that, you know damn well kids rather play games than read books when they are learning from home.
I would start a
short position around $30.55
Cover around 22.50
