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...

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