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IPO Edge’s Jannarone: Chuck E. Cheese Offers Steady Alternative to Tech Deals – TD Ameritrade

John Jannarone

In an interview with TD Ameritrade NetworkIPO Edge Editor in Chief John Jannarone explains that highflying tech IPOs such as Zoom (ticker: ZM) and Slack (ticker: WORK) offer great potential but will likely be very volatile given their steep price-to-sales multiples and slow paths to profitability. Instead, investors might consider shares of Leo Holdings Corp (ticker: LHC), a blank-check company which is merging with Chuck E. Cheese parent CEC Entertainment, which will bring the latter company public. The deal implies a roughly 6.9 times Ebitda multiple, which is less than most restaurant and entertainment venue operators, while growing at around 10% for the next few years. Watch the interview here.

 

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