Carbondale Capital
Long only, value, growth at reasonable price

West Marine Is Close To Tangible Book, And On The Move With 80% Upside Remaining

West Marine (NASDAQ:WMAR) is inflecting upwards as investors are ceasing to value it on tangible book and starting to value it on 2014 EBITDA. We believe there is room for 80% upside as the company begins to trade on 2014 profitability.

West Marine is the unrivaled national leader in a timeless business, but similar to SAExploration, has been negatively affected by a conflux of one-time events:

  1. Terrible weather over the past year, including Hurricane Sandy.

  2. One-time tax hike to over 51%, during its second most profitable quarter in 2013.

  3. Peak capital expenditures that will be reduced dramatically starting in 2014.

When these effects are removed West Marine can conservatively generate more than $50 million in EBITDA. Even

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details