Helix Investment Research
Long only, special situations, contrarian, growth

SeaChange International: 40%+ Upside As Valuation Rises To Match Growth Prospects

In SeaChange International (NASDAQ:SEAC), we believe we have uncovered a company with a compelling value and growth proposition on all fronts. Earnings are set to grow by double digits in both fiscal 2014 and fiscal 2015 (SeaChange's fiscal year ends in January), and yet the company essentially trades at single-digit multiples when adjusted for the ample cash & investments sitting on its balance sheet. With a market capitalization of less than $350 million, coverage from just five sell-side analysts, and the activist firm Starboard Value serving as the company's largest investor (with a stake of almost 8%), we believe that the market has missed the long-term potential of SeaChange, and believe that upside of at least 40%...

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