Though shares of ModusLink (MLNK) have performed well since releasing a strong set of earnings on October 15, the stock remains off the radar screens of most investors. While the company has nearly completed an operational turnaround, this isn't apparent from by looking at the ModusLink's income statement over the past couple of years which has been marred by restructuring charges. Similarly, its most significant asset, a deferred tax asset, is not included in the company's financial statements as there is a valuation allowance set against it - keeping it 'hidden.' These factors, coupled with an ugly history (discussed below) and a free float of only $135 million, make it unlikely investors have even heard of ModusLink. As...
ModusLink: An Operational Turnaround, A Big Hidden Asset, An Activist, And A Low Valuation
Oct 25 2013, 09:30 | about: MLNK
BOOKMARKED / READ LATER
Added to your bookmarks on the Seeking Alpha homepage
Editor's notes: MLNK's new management, cross over to operating profitability, and bounty of NOLs and fresh cash have shares poised to go higher. Acquisition-fueled growth could create triple-digit upside for longs.