I'm not a big fan of pair trading, but sometimes the market gives us opportunities that are just too good to pass up. The identity theft protection industry happens to be offering one of these opportunities right now with LifeLock (NYSE:LOCK) being extremely overvalued and/or Intersections (NASDAQ:INTX) being extremely undervalued. Both companies offer commodity-like identity theft protection services; however, the stocks are trading at massively different valuation levels.
LifeLock is currently trading at a price that values a LifeLock subscriber at ~10x that of an Intersections subscriber ($361.05 per sub vs. $36.52 per sub). If we value LifeLock in-line with Intersections, LifeLock is worth $4.15 (-60% decline from here). If we value Intersections in-line...
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