Vince Martin
Long/short equity, value, gambling

After Doubling, Blucora Still Undervalued

BCOR data by YCharts

It's been a strong two-year run for Blucora (NASDAQ:BCOR), whose shares have better than doubled since late 2011. It's been an eventful two years, as well; the company changed its corporate name from InfoSpace and made two major acquisitions. The company purchased online tax provider TaxACT for $287.5 million in January 2012, and online electronics retailer Monoprice for $180 million earlier this month.

In both cases, the rationale for the purchase was roughly the same: to purchase stable, profitable businesses who would continue to operate on a standalone basis while Blucora protected those profits from taxes with its considerable net operating loss carryforwards (known as NOLs). As of the end of 2012, according the...

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