Here's Why I'm Short Open Table

Whitney Tilson, founder of T2 Partners, is short Open Table. He thinks that, while the company has a good management team and is generally run well, it is severely overvalued.

Tilson projects at least a 50% decline for the stock.

In his latest letter, Tilson recommends doubters read a short presentation from Cornell MBA student Emmanuel Franjul (via Market Folly).

In it, Franjul breaks down just why Open Table is overvalued.

Open Table is way overvalued

Heelys, as example.

Here's how Open Table works.

And here's how its expansion is going.

Open Table's aims.

But that doesn't make any sense with its stock price.

Here's a more realistic view.

And here's the real value.

And here's a look at the Discounted Cash Flow scenarios.

$61 just makes no sense.

But there are some risks...

Want to see some of Whitney Tilson's other picks?

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