West Marine (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:
Terrible weather over the past year, including Hurricane Sandy.
One-time tax hike to over 51%, during its second most profitable quarter in 2013.
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...
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