Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Prisa: Debt Deal Done, Asset Sales On Deck

Authors Note: This is a complex, event-driven, special situation investment. Investors are advised to do their own due diligence.

Investors who believe in the efficient market hypothesis ("EMH") need to look no further than shares of Promotora de Informaciones [(NYSE:PRIS)(NYSE:PRIS.B)] ("Prisa") to discover that the market clearly misprices securities.

Since I wrote my December 6 narrative on Prisa, the A shares have appreciated 23% while the B shares increased 32%, with each share class currently sitting at $2.13 and $2.80, respectively. Not bad for about 3 weeks of 'work.'

In the last narrative, I pointed out that significant catalysts were looming in the near-term, including: (1) a debt restructuring/equity recapitalization and (2) asset sales. With the...

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