TLDR:$4.84 in cash & $900 million of NOLs available in November. You can buy Jan 2028 $5 leaps for 22 cents.Thanks for reading Triple S Special Situations Investing! Subscribe for free to receive new posts and support my work.IntroductionOn July 22, Domo sold its entire operating business to Progress Software for $400 million cash.What’s left is a stub, like the ContextLogic trade we did that is up 60% YTD.Roughly $246 million of net cash, or $4.84 a share, plus more than $900 million of NOL carryforwards against a current stock price of $3.70.I find the Jan 2028 $5 leaps for 22 cents to be interesting.You can also buy the stock at a significant discount to cash for reasons explained below.How an over $2 Billion company evaporated into thin airJosh James once knew how to sell a company.He co-founded Omniture with John Pestana in 1996, took it public in 2006, and sold it to Adobe in 2009 for $1.8 billion.Then he founded Domo in 2010 and raised roughly $714 million privately from BlackRock and friends.The last private round was priced for over $2 billion.The company went public and ate shit from there.He stepped down as CEO in March 2022, watched his replacement John Mellor for a year, then took the job back in March 2023 and installed a new c-suite on the same day.None of them fixed the business.Domo owed about $137 million to funds, then breached a loan covenant.A sale was forced or bankruptcy was on the table and that brings us to today.The DealProgress Software pays $400 million for substantially all assets, the employees, and the platform.Domo keeps the $900 million NOLs and the $4.84 cash remainco with an expected close of Nov 30th.Josh controls Domo through a multi-share structure which gives him voting control.He signed an irrevocable consent as controlling shareholder, so the vote is already done.Josh and the existing board stay, so this is a huge negative as we don’t know which Josh will show up, but the hungry one hasn’t been around for a while.Go forward burn is the question I cannot fully answer.The company says “limited operating expenses” whatever that means.What is the NOL worth?Nothing without a business that makes money, so management comes into play here.ContextLogic provides a good case study. I wrote up LOGC in March 2025.BC Partners injected $150 million of equity for 42% of LOGC’s shell.LOGC had about 2.7 billion NOLS.If you do the math on that and apply it to Domo, it gives you roughly 8 cents on the dollar or $72 million (~$1.40/share)In total: $4.84 of cash plus $1.40 of tax asset, gives you $6.24 per share for Domo.In February, LOGC closed its first acquisition.They went out and bought a salt company. Yeah, I know dumb right?Salt is sort of the boring multi-decade profitable business that is well suited for a NOL.I hated it but it worked out.BC Partners signed its investment on February 24, 2025 and the acquisition closed February 26, 2026, so about a year.Not that this timeline matters, but this explains why I chose a leap into 2028 for Domo.Sometimes you need to let these stocks cook.Management, For Better or WorseJosh James is staying as CEO of the shell.He does not need your vote or your opinion.The stated plan of the company is to monetize the NOLs with acquisitions in AI and automation, and to consider returning capital to shareholders.“After the closing of the transaction, Domo, Inc., the Delaware holding company, will change its name and ticker and remain a separate publicly-listed entity with limited operating expenses and a debt-free balance sheet. The Board intends to use the proceeds from the transaction to identify opportunities to monetize its NOLs. It will consider potential transactions where the company can employ its expertise in AI and automation to enhance profitability as well as options to return capital to shareholders. The Company will continue to be led by Founder and Chief Executive Officer Josh James and its Board of Directors.”As with many of my wilder options investments, inshallah.The TradeIV on this thing is very low.I also don’t want to devote a bunch of capital to someone who has been a not-so-great investment manager recently.I bought the January 2028 $5 calls for 22 cents.You are buying calls at the cash price and below the NOL + cash price.So, 22 cents buys a 17 month lotto ticket that they get an interesting deal done.If they have an outcome like ContextLogic, you are talking about a 10X or 20X.Don’t want options? Just buy the stock below cash.RisksThe deal has to close.If it doesn’t by November 30, the Chapter 11 paperwork will be coming forthright.This is another reason to control risk through options.And even if the deal gets closed, Josh could simply spend the cash badly. He has a lot of practice.ConclusionI make these bets because I am too lazy to go to Vegas.Often times, they don’t work out.Occasionally they do, and they pay for the next 20 ideas I have.This has better odds than any horse track or craps table, so have fun and don’t die.If you enjoyed this write-up, please like and restack.I don’t get paid to do this, so consider that my reward.Substack seems to throttle free article writers, which makes attracting new readers difficult. I do not want to charge for this substack, but the algorithm may end up requiring it. I am trying to avoid this, so please spread this substack if you can.Also, if you have other ideas I should write about, my DM’s are always openAll writeups are subject to our TOSThanks for reading Triple S Special Situations Investing! This post is public so feel free to share it.Share