While we consider ourselves disciplined value investors, there are infrequent occasions when we are long stocks that are not what we'd conventionally call cheap. In these special situations, we look for secular and cyclical tailwinds, an inflection in prospective growth that could merit a multiple re-rating, indications of confidence from management (i.e. a buyback) and additional elements that at least somewhat de-risk the investment. We believe that Move Inc. (MOVE) fits this profile, and we are currently long, with the belief that if our thesis plays out, shares could enjoy 40%-plus upside over the next 6 months.
We first started doing work on Move over a year ago given what we believed was potential for a turnaround in...
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