Seeking Alpha
  • Why I'm Buying Aviat Networks Hand Over Fist
    Top Idea AVNW Today, 5:00 AM Inefficient Market 13 Comments

    Summary

    • Net cash represents nearly 70% of market capitalization.
    • Currently trades for just 7% of revenue (EV/Revenue basis).
    • Trades 30% below tangible book value.
    • Management forecasting a return to profitability during second half of calendar 2014.
    • Bullish long-term outlook in a growing industry.
  • Ignite Restaurant Group: Hidden Value In The Company's Attractive Assets
    Top Idea IRG Yesterday, 5:00 AM Shaun Currie, CFA 9 Comments

    Summary

    • IRG's valuation has been weighed down by the Macaroni Grill acquisition, but the company's other assets are worth much more that the current enterprise value.
    • Recent management shake-up at Macaroni Grill and management commentary leads me to believe that this segment is stabilizing.
    • If we were to assign a valuation of zero to Macaroni Grill, instead of its current negative valuation, we could see IRG's stock move into the $20-25 range.
    • Even if the business does not stabilize, the segment's attractive real estate portfolio allows for conversions to Brick House Taverns at a lower cost than new builds, or possible monetization.
  • Staples: Industry Consolidation Leading To 50% Upside
    Top Idea SPLS Yesterday, 5:00 AM CDM Capital 26 Comments

    Summary

    • The poor quarter was negatively skewed by difficult comps against a 53rd week, unfavorable foreign exchange rates, and 109 store closures.
    • The market systematically underestimates the speed at which industry consolidation will take place between Office Depot and Office Max.
    • The street under appreciates Staples market leading position, as well as its growing e-commerce business.
    • Private equity is likely a potential suitor in a non-levered high free cash flow retailer with significant hidden value in its online business.
    • Business trades at around 10x LTM earnings, with significant free cash flow levers starting in 2015.
  • VASCO Data Security To Benefit From Heartbleed Bug, Opportunity To Unlock Value Via Tender Offer/Special Dividend
    Top Idea VDSI Yesterday, 5:00 AM Dr. Hugh Akston 2 Comments

    Summary

    • VDSI positioned to benefit from Heartbleed bug raising awareness of fixed password vulnerability.
    • Wall Street expectations for FY 2014 look too low, Q1 earnings should be catalyst.
    • VDSI should conduct tender offer for 10% of the shares outstanding at $8 per share and pay a one-time dividend of $1 per share.
    • The economic situation in Europe is on the mend, will benefit VDSI order intake.
  • Lifetime Brands: A Mundane Company, With Exciting Profit Potential
    Top Idea LCUT Wed, Apr. 16, 5:00 AM Helix Investment Research 7 Comments

    Summary

    • Lifetime's mundane business belies its profit potential.
    • The company expanded gross margins during the key holiday quarter, alongside rising revenues and EPS.
    • With insiders owning 22% of outstanding shares, capital is being deployed in an accretive fashion.
    • Continued moves to enlarge brand portfolio and international presence will increase Lifetime's addressable market.
  • Kodiak Oil & Gas: A New Paradigm - A Moderate-Risk Development 'Story'
    Top Idea KOG Tue, Apr. 15, 5:00 AM Richard Zeits 26 Comments

    Summary

    • The article provides illustrative valuation analysis of Kodiak’s drilling inventory, including risks and upsides.
    • The stock is priced very reasonably relative to its value potential.
    • The transition into full development mode and substantially reduced operating risk should help to close the gap between the stock price and the underlying NAV.
  • 1347 Property Insurance Holdings: An IPO Left For Dead With Upside Of 50%-100%
    Top Idea PIH Tue, Apr. 15, 5:00 AM Alpha Gen Capital Comment!

    Summary

    • National property insurers continue to reduce their exposure to Louisiana and other coastal markets.
    • Premiums have skyrocketed in certain states allowing Maison to cherry-pick high margin policies.
    • The volatile insurance climate as it pertains to more weather losses has been overrated and biased by Katrina.
    • Lower reinsurance rates should be a nice tailwind in the near-to-medium term.
  • Tronox - Time To Focus On The Future
    Top Idea TROX Fri, Apr. 11, 5:00 AM Brian Langis 17 Comments

    Summary

    • Tronox is in a solid cash position.
    • The TiO2 industry is stabilizing.
    • Tronox could make an acquisition or be acquired.
    • Nice reliable $1.00 per dividend per share.
    • Tronox’s bankruptcy and litigation are now a thing of the past.
  • Rio Alto: Potential Double, Limited Downside
    Top Idea RIOM Thu, Apr. 10, 5:00 AM Ian Bezek 35 Comments

    Summary

    • Market has failed to account for excellent resource update in February.
    • This resource update gives RIOM the financial flexibility to build Phase II of the La Arena mine without diluting shareholders.
    • Phase II feasibility study results this summer offers catalyst for sudden repricing of stock higher.
    • The market currently values Phase II at nearly zero. As such, Phase II is a nearly free call option on 4 billion pounds of copper/4 million ounces of gold.
    • Existing operations are worth roughly $2/share, limiting downside even if Phase II doesn't work out.
  • Nighthawk Energy Sees Triple-Digit Growth By Hitting Sweet Spots In The Denver-Julesburg Basin
    Top Idea NHEGY Wed, Apr. 9, 5:00 AM Value Digger 77 Comments

    Summary

    • Nighthawk Energy is a very well-run company with a sound financial plan.
    • Thanks to its low cost and oily wells that have high IRR and fast payouts (3 months), the company has achieved tremendous growth of late.
    • Nighthawk's fast payout is the kind of short payback that any junior producer needs so that cash can be quickly reinvested in the next well to keep growing production.
    • The company has plenty of running room and the continued development of its core properties will drive production, reserves and EBITDA higher over the coming months.
  • G-III Apparel Group: Unjustified Discount Belies Solid Execution And Opportunities Ahead
    Top Idea GIII Tue, Apr. 8, 5:00 AM Helix Investment Research 4 Comments

    Summary

    • G-III managed to not only grow revenues, EPS, and EBITDA in the holiday quarter, but posted rising gross margins across all segments.
    • Despite solid performance in fiscal 2014, shares trade at meaningful discounts to peers.
    • With management owning over 16% of outstanding shares, clear incentive to deploy capital in an accretive fashion.
  • Broadridge: New Joint Venture And Overseas Expansion A Game Changer
    Top Idea BR Tue, Apr. 8, 5:00 AM Alpha Gen Capital 7 Comments

    Summary

    • Joint venture with Accenture to scale in Europe and Asia.
    • Market leading position with large, defensible moats.
    • Technologically advanced leading to disruption in the space.
    • Low cost provider adding value to clients in the fixed income space.
  • Gray Television: The Unlikely Winner Amid Adverse Industry Regulation
    Top Idea GTN Sat, Apr. 5, 5:00 AM Johannes Salim 23 Comments

    Summary

    • With FCC regulation limiting joint sales agreements (JSA), the overall broadcasting sector has been dealt a huge blow.
    • However, unlike its rivals, Gray Television (the cleanest in terms of JSA usage) is likely to emerge relatively unscathed or even stronger, fundamentals-wise.
    • Double-digit FCF yield (11-12% in 2014-15) is mainly due to a 30% share price decline YTD and overlooked acquisition effect.
    • Compelling risk reward has arisen: an attractive (almost) 6 to 1 upside to downside ratio.
  • Highway Holdings Limited Move To Myanmar Should Add 50% To Its Value
    Top Idea HIHO Wed, Apr. 2, 5:00 AM Igor Novgorodtsev 17 Comments

    Summary

    • Highway Holdings Limited is struggling with rising labor costs in China.
    • The company plans to move to a much cheaper Myanmar starting this year.
    • Once it has moved, the labor costs savings should significantly increase its value.
  • Insulet: On A Sugar High With Downside Of 30% Or More
    Top Idea PODD Tue, Apr. 1, 5:00 AM Alpha Gen Capital 7 Comments

    Summary

    • The number of new entrants has increased the competition significantly.
    • The effect of future Dilution on valuation.
    • The Medtronic patent infringement settlement eliminates a significant competitive advantage.
    • Alternative products coming to the market such as the Artificial Pancreas and inhaled drugs.
    • The market opportunity is being overplayed.
  • Gannett: Compelling Risk Reward Due To Overblown Regulatory Risk
    Top Idea GCI Tue, Apr. 1, 5:00 AM Johannes Salim 9 Comments

    Summary

    • With completed acquisition of Belo, Gannett is transforming itself into more of a broadcasting play (high growth, high margin business).
    • FCF yield for Gannett is forecast at a whopping 12-13% (2014-15), pointing to significant under-valuation.
    • Potential new regulation (greatest share overhang) would have immaterial impact to Gannett (5% EBITDA reduction on worst case).
    • Easing regulatory risk premium and 40% EBITDA growth delivery are powerful catalysts to re-rate Gannett substantially.
    • Compelling risk reward ratio mainly due to overblown regulatory risk.
  • LivePerson: From Chat To Data Analytics, Transition Exit Upcoming
    Top Idea LPSN Tue, Apr. 1, 5:00 AM Nassarius Capital 2 Comments

    Summary

    • Market is underestimating the potential penetration of installed base with upgraded platform LiveEngage 2.0.
    • Market is not fully appreciating LPSN’s large addressable market opportunity in shift from phone to chat.
    • Market is overlooking LPSN’s potential in data analytics by assigning a customer service like multiple.
    • Our FY14 estimated PT of $16.25 represents potential upside >35%.
  • Bally Technologies: Macro Headwinds Create Attractive, Best-In-Class Buying Opportunity
    Top Idea BYI Tue, Apr. 1, 5:00 AM Shaun Currie, CFA 6 Comments

    Summary

    • BYI's recent weakness is attributable to a weak environment for US slot sales.
    • Part of the weakness is due to announcements by its major competitor, which has overly impacted BYI's stock price.
    • BYI is the best-in-class company and has already diversified itself away from US slots, yet it trades at a historically low multiple.
    • Several major tailwinds will begin to kick in over the next 12 months, which should send shares 50% higher.
  • Dynasil Turnaround Not Priced Into The Stock
    Top Idea DYSL Tue, Apr. 1, 5:00 AM Dr. Hugh Akston 5 Comments

    Summary

    • DYSL has a fundamentally attractive business model with patents and IP value consistently accruing to the company.
    • New management team has restored the company to profitability, divested unprofitable business lines, paid down a significant amount of debt, and regained compliance with its debt covenant ratios.
    • We believe DYSL is actively in talks with new lenders to refinance out its senior debt, which should be a catalyst for the stock to rerate higher.
    • Stock is currently trading at half of its intrinsic value. Fair value at $3.00 per share equates to over +100% appreciation from here.
  • Weight Watchers: Excellent Business At A Fire Sale Price
    Top Idea WTW Sat, Mar. 29, 5:00 AM Intangible Valuation 120 Comments

    Summary

    • Weight Watchers has a great brand and business model -- plain and simple.
    • Weight Watchers has had over $200m+ in free-cash-flow for each of the last 10 years.
    • If the company can earn $150 million long term (in FCF or GAAP net income) the corporation is easily worth $1.9 billion -- 75%+ upside.
  • Stellar Biotechnologies: Low Risk Biotech Provider With Significant Upside
    Top Idea SBOTF Sat, Mar. 29, 5:00 AM Fincom Investment Partners 38 Comments

    Summary

    • Stellar's main product (KLH) is involved in 20 active clinical trials.
    • Studies include cures for cancer, Alzheimer's, arthritis and AIDS.
    • Stellar's valuation is only $125 mm vs. peers valued in the billions.
  • Comstock Resources - Oil And Gas Turnaround Play With A 40% Upside
    Top Idea CRK Fri, Mar. 28, 5:00 AM Drill Capital 13 Comments

    Summary

    • Eagle Ford Growth and TMS Optionality Provide Plenty of Near-Term Catalysts.
    • Initiating Coverage with a $30 Target Price.
    • Turnaround of portfolio has been successful.
  • Wesco Aircraft Holdings Distributes Attractive Risk/Reward
    Top Idea WAIR Fri, Mar. 28, 5:00 AM Unconventional Capital Wisdom 5 Comments

    Summary

    • Business is characterized by sticky long-term recurring revenues and many competitive advantages.
    • Managed by owner operator that has proven to be highly successful over the long term.
    • Potential synergies of recent Haas acquisition seem to go under appreciated by the market.
    • Protection against capital impairment and significant growth/synergies could produce large gains in the next two years.
  • Tower's Merger Offers Opportunity For Double-Digit Annualized Returns
    Top Idea TWGP Wed, Mar. 26, 5:00 AM Whopper Investments 18 Comments

    Summary

    • Market underestimating odds of Tower's merger with ACP RE closing.
    • Filing of 10-K by end of month should alleviate market's concerns.
    • Opportunity for over 15% annualized returns with limited risks given nature of ACP's guarantees.
  • Nevada Copper Is A Rare Opportunity
    Top Idea NEVDF Wed, Mar. 26, 5:00 AM Itinerant 54 Comments

    Summary

    • Nevada Copper is moving towards production at its Nevada copper mine.
    • The Pumpkin Hollow is a world-class project which has been greatly de-risked.
    • Several compounding factors have led to a crass under-valuation of the company.
    • Nevada Copper currently represents a rare LONG opportunity.
  • American Eagle Outfitters: Risk/Reward Now Becomes Too Compelling To Ignore
    Top Idea AEO Tue, Mar. 25, 5:00 AM Shaun Currie, CFA 28 Comments

    Summary

    • The current bear thesis on AEO is contradicted by the company's brand relevance rankings.
    • Brand relevance should provide support for the company to weather the current teen retailing storm, setting the company up for future market share gains.
    • The current risk/reward dynamics of the stock are compelling.
  • Willi-Food International Should Be Taken Private For A Potential 100% Gain
    Top Idea WILC Sat, Mar. 22, 5:00 AM Igor Novgorodtsev 34 Comments

    Summary

    • Willi-Food International was already trading at a large discount to its fair value.
    • The market misinterpreted the owners share sale to an investment group as "an insider sell".
    • The new owners should take the company "private" easily realizing a tremendous gain.
  • Is The Tuesday Morning Turnaround Story A Myth Or Reality?
    Top Idea TUES Sat, Mar. 22, 5:00 AM Volte-Face Investments 8 Comments

    Summary

    • Tuesday Morning Corporation's turnaround is already fully priced into the stock, leaving no room for the tough reality of the discount retail environment.
    • First Stage of a Turnaround strategy.
    • Undercapitalized Distribution Channel.
    • Insufficient Technology Infrastructure.
    • Insider Selling by Shareholder Activist.
  • Steel Excel - Shell Company Turning Into Profitable Business
    Top Idea SXCL Fri, Mar. 21, 5:00 AM New Capital 8 Comments

    Summary

    • Steel Excel (SXCL) is a holding company / acquisition vehicle owned and managed by an activist value investor with a good track record - Warren Lichtenstein.
    • Following Black Hawk acquisition in Dec 2013, operating cashflows are due to increase by 70-80% during 2014. This improvement will be reflected already in Q1 2014 results due in May.
    • Conservative sum of parts valuation indicates 25% upside. With earnings boost from Black Hawk operations and ongoing share buybacks, gap between market price and intrinsic value is likely to narrow.
  • Underfollowed SaaS Provider GlobalScape Has Substantial Upside In Years Ahead
    Top Idea GSB Fri, Mar. 21, 5:00 AM Soldier of Fortune 13 Comments

    Summary

    • GSB has missed the market run-up in recent years and remains one of the few companies remaining with compelling valuations.
    • Secular tailwinds and incentivized insiders should help yield at least 72% upside in next two years.
    • Fortress balance sheet provides substantial downside protection and minimizes risk of permanent loss of capital.
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler
    Top Idea ABC Fri, Mar. 21, 5:00 AM Short Bias 10 Comments

    Summary

    • Gross margin at AmerisourceBergen (ABC) continues on a downward spiral that was in existence well before its partnership with Walgreens/Alliance Boots;
    • ABC has made some accounting decisions that attempt to shore up its income statement—counting a gain as an offset to COGS and reducing its Allowance for Doubtful Accounts;
    • ABC’s cash inflows are now very dependent upon an accounts receivable securitization program, which would also benefit from a lower Allowance for Doubtful Accounts;
    • However, over the next 6 to 9 months, fundamentals will make it harder to mask deteriorating margins and cash flows—target $45 per share.
  • Pizza Inn's 'Growth' Plans Are Overrated
    Top Idea PZZI Fri, Mar. 21, 5:00 AM Intangible Valuation 45 Comments

    Summary

    • Pizza Inn Holdings is priced in the market as if it could earn $2.5 to $5 million – but its current earning power is negative.
    • Pizza Inn Holdings is priced as if it were growing – but it is on the decline. It even posted negative comps in its “growth business.”.
    • Pizza Inn Holdings has historically made money through selling inventory through its franchisee system – a system which is shrinking dramatically.
  • Willis Group: Lollapalooza Ahead
    Top Idea WSH Thu, Mar. 20, 5:00 AM Early Retiree 4 Comments

    Summary

    • Willis Group is well positioned to benefit from a whole series of tailwinds in the near future.
    • The company enjoys a very stable business with over 90% of revenues recurring every year.
    • The new CEO thinks like a value investor and has outlined a credible path to double digit growth.
    • While the downside is well protected by Willis' stable revenue base, the compounded effect of several tailwinds together will likely produce tremendous upside over the next 2 years.
  • Armada Hoffler: Developing A Path To Outperformance
    Top Idea AHH Wed, Mar. 19, 5:00 AM Dane Bowler 4 Comments

    Summary

    • Armada Hoffler is presently undervalued consequent to a variety of temporary negative catalysts. As these catalysts expire, we expect the FFO multiple to improve.
    • It is positioned to grow FFO/share through a large (relative to its market cap) pipeline of accretive development opportunities.
    • The combination of FFO/share growth with FFO multiple expansion could generate material capital gains.
  • Hillenbrand International: Why Shares Present A Compelling Short Opportunity
    Top Idea HI Wed, Mar. 19, 5:00 AM Investor Protector 5 Comments

    Summary

    • Hillenbrand is seeing negative organic growth in 3 of its 4 businesses.
    • The company has seen margin contraction, which may continue.
    • Amidst all this, the stock is trading at historical premiums.
  • Zargon Oil And Gas Is In The Bargain Bin And Ready To Take Off
    Top Idea ZARFF Tue, Mar. 18, 5:00 AM Value Digger 100 Comments

    Summary

    • There are always hidden gems in the oil and gas sector.
    • Zargon Oil and Gas is grossly undervalued no matter how you slice it.
    • Zargon Oil and Gas is too cheap to ignore and has some strong catalysts.
  • After 25% Pullback, Lenovo Looks Extremely Interesting
    Top Idea LNVGY Tue, Mar. 18, 5:00 AM Ashraf Eassa 57 Comments

    Summary

    • After peaking in January, Lenovo's shares have pulled back nearly 25%.
    • While indigestion concerns loom after the acquisition of Motorola Mobility and IBM's X86 server group, the growth opportunity is enormous.
    • Shares trading at just an $11 billion market capitalization grossly undervalues the company's long-term earnings power.
  • UQM Technologies: Many Clues That An Inflection Point Is Upon Us
    Top Idea UQM Sat, Mar. 15, 5:00 AM Shaun Currie, CFA 9 Comments

    Summary

    • Investors may currently be focusing on the car opportunity with Audi and Saab, but overlooking the real upside in the short term, which is a major bus deal in China.
    • The company's recent secondary offering and announcement of ISO/TS 16949 Certification lead me to believe that a bus deal in China is imminent.
    • Even if this bus deal does not come to fruition in the short run, the company has several other opportunities that could expand over the coming year.
  • Global Sources: Special Situation And Value
    Top Idea GSOL Sat, Mar. 15, 5:00 AM Saj Karsan 12 Comments

    Summary

    • The company is offering to buy back shares at $10 per share.
    • Shares of GSOL trade for just $8.
    • For shares that aren't tendered, the shares still represent great value.
  • Nexstar Broadcasting Group: In 2014, Its Star Will Continue To Shine
    Top Idea NXST Sat, Mar. 15, 5:00 AM Helix Investment Research 14 Comments

    Summary

    • Sizable pullback has created an attractive entry point in NXST.
    • Balance sheet is stronger than a cursory glance suggests.
    • Dividend increase in early 2014 suggests confidence in future cash flows.
  • D.E. Master Blenders 1753: A Low-Risk Squeeze-Out With An 8.2% Gross Return
    Top Idea DEMBF Sat, Mar. 15, 5:00 AM Yuanxi Zhang 31 Comments

    Summary

    • D.E. Master Blenders is squeezing out minority shareholders at EUR 12.50 per share.
    • Contrary to the company's guidance, the statutory buyout proceedings is likely to close by late April.
    • Shareholders are likely to receive an 8.2% gross return in 1.5 months.
  • Image Sensing Systems: An Undervalued Opportunity In The Intelligent Traffic Solutions Industry
    Top Idea ISNS Fri, Mar. 14, 5:00 AM Mike Arnold 24 Comments

    Summary

    • High margin royalty income protects downside and provides upside potential.
    • License Plate Recognition ("LPR") hardware/software solutions offer upside optionality.
    • Management has multiple levers to drive cash flow generation and profitability.
    • Ongoing FCPA investigation creates uncertainty; 2013 earnings results hampered by non-recurring professional services costs. Management believes all FCPA related expenses are finished except for potential fine.
    • Image Sensing Systems is a takeover candidate; the company adopted a shareholder's rights plan in 2013 to avoid being acquired at a discount.
  • Renewable Energy Group, Inc.: A Textbook Dollar Bill For Fifty Cents, Maybe Less
    Top Idea REGI Thu, Mar. 13, 5:00 AM Daniel Walk 55 Comments

    Summary

    • Mkt. cap.: $445.27mm as of March 10, 2014.
    • Tangible book value: $504.37mm as of December 31, 2013.
    • Book value: $594.1mm as of December 31, 2013.
    • Earnings, 2013: $186.36mm.
    • Dividend: $0.00/share.
  • Fortress Paper Ltd. - A Misunderstood, Unfollowed Gem With Multiple Catalysts In Place
    Top Idea FTPLF Thu, Mar. 13, 5:00 AM Munich Value Investments 33 Comments

    Summary

    • Fortress Paper is a producer of banknotes (Euro, Swiss Franc) and dissolving pulp (Viscose).
    • Wrongful association with the faltering paper industry left Fortress deeply undervalued.
    • Multiple short-term catalysts are set to reverse current market perception.
    • Investors and analysts are extrapolating past issues into the future while ignoring underlying fundamental factors that lead to a very favorable risk-return profile.
    • Management has been operating in an incredibly tough environment with multiple setbacks while still limiting the downside for investors.
  • Puma Biotechnology: A Short Thesis For Investors
    Top Idea PBYI Thu, Mar. 13, 5:00 AM Poonam A. Arora 11 Comments

    Summary

    • Lead asset Neratinib is not best in class or first in class. Significant Grade 3 or 4 diarrhea is a major side-effect.
    • The drug carries the risk of class effect given it’s similarity to Tykerb that doctors use sparingly due to toxicities.
    • Given that Neratinib in most indications will be 3rd or 4th to market, PBYI will find it challenging to promote the drug in a space dominated by Roche.
    • Although, Neratinib is being studied as treatment for various types of HER2+ breast cancer, the clinical and regulatory pathway for most indications is unclear.
    • I believe the class effect and toxicity risk associated with Neratinib are being overlooked in the stock’s current valuation. My PT of $86.27/share reflects an appropriate risk rate.
  • Morguard Corp: A Diverse High Quality Real Estate Portfolio That Sells At A 50% Discount
    Top Idea MRCBF Wed, Mar. 12, 5:00 AM Nitor Capital 24 Comments

    Summary

    • Morguard owns US and Canadian real estate, two REITs, and an asset management business that manages over $15 billion in real estate assets.
    • Combined, these assets are worth $2.46 billion or $195 per share.
    • The value of Morguard's assets represent a 50% premium to the current market cap, which is just $1.6 billion or $129 per share.
  • Lancashire - Money Making Machine With At Least 45% Upside
    Top Idea LCSHF Wed, Mar. 12, 5:00 AM New Capital 19 Comments

    Summary

    • Lancashire Holdings is a London based niche insurance/reinsurance company with a track record of spectacular financial performance: average ROE of 19%, combined ratio of 60% and 10% dividend.
    • The company trades at PE=10 (or forward PE=6.9), and the market currently attaches no value to its newly started/acquired businesses, which will increase 2014 earnings by 45%.
    • Recent decrease in share price (22% during the last year) gives a asymmetric buying opportunity with at least 45% upside within one year.
  • Sequans Communications: Public Stock With Venture-Like Multiple Returns
    Top Idea SQNS Tue, Mar. 11, 5:00 AM Edward Schneider 19 Comments

    Summary

    • Sequans is an early leader in the multi-billion dollar single-mode LTE market opportunity.
    • Impressive design wins with Verizon among others, can create at least a 2x - 4x stock boost.
    • Sequans is a high-risk/high-return stock. So investors should read the risks in the article before buying.
  • Revisiting Idenix: Continues To Have Big Potential With Low Risk/High Reward
    Top Idea IDIX Tue, Mar. 11, 5:00 AM Unconventional Capital Wisdom 8 Comments

    Summary

    • Lawsuit with Gilead over Sovaldi patents could lead to a settlement worth over $1 billion in the next few years.
    • Seth Klarman's Baupost has almost doubled their ownership in Idenix and are highly bullish.
    • A combination of the net present value of a potential settlement and future drug developments = >400% upside.
  • Zygo: Overlooked, Cash-Heavy, And Ready To Rebound
    Top Idea ZIGO Sat, Mar. 8, 11:30 AM Nassarius Capital 16 Comments

    Summary

    • Tailwinds in key markets and a positive shift in product mix benefit bottom line results.
    • Hedge fund MAK Capital One (holding ~23% of ZIGO shares) recently took over as Board chairman; an unlocking/creation of shareholder value expected soon.
    • Zero sell-side coverage of ZIGO shares has aided an inefficiency gap; any uptick in investor awareness could narrow the gap.
    • Limited downside, with 30% of MV in cash and consistent institutional support at ~1.1-1.2 tangible BV.
    • Our estimated CY2014 price target of $22 represents potential upside of 40%.