Dear SA PRO subscriber,
This is your daily report for Tuesday, December 31, with today's top long and short ideas available only to SA PRO subscribers.
PRO Exclusive: What's New
- Alpha-Rich ideas will now be called Top Ideas. We believe the new name is a more accurate description of these articles.
- Top Ideas are our best long and short ideas.
- Subscribers get a 24-hour early look at these ideas as well as exclusive access to past Top Ideas in our research library.
If you have any feedback on this or other recent changes, please let us know at firstname.lastname@example.org.
This Week's Publishing Schedule
Due to the New Year's Day holiday on Wednesday, we will not be publishing Top Ideas either today or tomorrow.
Top Ideas publication will resume on the morning of Thursday, January 2. We wish our subscribers a healthy, happy, and safe holiday and a prosperous New Year.
Exclusive Top Ideas
- Long EMCOR. Recent Results Cloud Bright Future, by Alpha Gen Capital. A recovery in core markets and a strategic acquisition bode well for EME, giving shares 25% upside. Exclusive until 9:30 AM today.
- Tesaro Offers Excellent Risk-Reward: Market Overreacted To Weaker-Than-Expected Data, by Buddy Lyons, CFA. Disappointing phase III trial results don't change the fact that TSRO's Rolapitant remains set to be approved, and could lead to triple-digit gains. Exclusive until 9:45 AM today.
- Baltic Trading Limited: A Quick Double If Shares Cooperate, by Michael A. Williams. As the shipping industry continues to recover, BALT's stronger balance sheet and higher leverage make shares attractive relative to peers. Exclusive until 10:00 AM today.
- Nutrisystem: For A Jump On Your New Year's Resolution Get An Early Gift For 2014, by Careful Investor. NTRI's expanding approach to weight-loss programs could leave investors in good shape, with at least 33% upside to current levels. Exclusive until 11:15 AM today.
- Versar: Buy This Boring Stock For Superior Returns, by Igor Novgorodtsev. With a focus on margins, project management company VSR should gain 50% as its backlog is realized. Exclusive until 12:45 PM today.
The LGL Group's Strategic Review Warrants A Second Look, by Whopper Investments. With significant assets on the books and several potential acquirers, LGL could cash in gains of 50%. Exclusive until 2:15 PM today.
- Crédit Agricole: Farming Double-Digit Returns At France's Largest Bank, by Helix Investment Research. A byzantine ownership structure has caused ACA.PA to trade at a discount to peers, but lessening sovereign debt exposure and increasing profits should lead to 30% upside. Exclusive until 2:45 PM today.
The Best Research Library Articles of 2013
As 2014 approaches, the PRO team will highlight the best of our Top Ideas and Small-Cap Research content brought to you in 2013. Today, we're reviewing some of our best Research Library articles, as chosen by the PRO editorial team:
- Organovo's Breakthrough in Hepatotoxicity Testing, by Jason Napodano. Long before ONVO becomes one of the most-discussed and most-traded biotech stocks in the second half of the year, biotech expert Napodano details the company's business model and potential upside.
- Ballard Power Systems; The Original Tesla, by Marshall Hargrave. As Tesla makes market headlines seemingly every other day, Hargrave profiles BLDP, a 'green' automotive company whose parabolic rise in the 1990s echoed that of TSLA, and who now seeks to regain past glory.
- Dole's $12.00 MBO Is Ripe For A Price Bump; $5.56 Of Non-Core Assets May Draw Bidders, by Mike Winston. In the wake of a $12 per share buyout offer from its former CEO, Winston recommends that DOLE reject the offer and wait for a higher price, somewhere around $13.62. Less than two months later, the company would accept a raised bid of $13.50 per share.
- Forget Arena Vs. Vivus - Zafgen May Be The Ultimate Winner, by Stephen Simpson, CFA. Amidst a pitched battle between weight-loss drugs, Simpson notes the potential entry of a third drug from a private company, with the potential to make losers out of both VVUS and ARNA.
- A $180 Million Company Worth Less Than $0: Short Xumanii, by Ashraf Eassa. Tech expert Eassa calls out XUII soon after busting a similarly promoted penny stock, BIZM.
- Halcon Resources: Dilution Spree Is Going On, Fundamentals Starting To Weigh On The Stock, by Value Digger. Value Digger builds a detailed, extensive short case for HK, taking the other side of the trade from heavyweights John Paulson and T. Boone Pickens.
- Bob Evans Farms: The Value Is In The Pieces, by Shaun Currie, CFA. Analyst Currie lays out the sum-of-the-parts for BOBE, looking well beyond its core business to secondary operations, new concepts, and the downside cushion provided by real estate holdings.
- Hubbell Arbitrage: Make 12% With A Possible 10% Kicker!, by Special Situations and Arbs. The spread between HUB.A and HUB.B reaches historic and unwarranted levels, providing a classic arbitrage opportunity for patient investors.
- Hawaiian Holdings, Buy On Recent Weakness: 40%+ Upside, by Alpha Gen Capital. Portfolio manager Alpha Gen Capital writes that airlines "rank just above Ponzi schemes" as investment targets, then expertly covers the bull case for HA.
- OpenText: Strong Catalyst With Red Oxygen, Another 50% Upside Expected In 2014, by Matthew Dow. IT consultant Dow predicts that OTEX' 'Red Oxygen' product suite will accelerate growth, while valuation remains reasonable.
The SA PRO team is Eli Hoffmann (Editor in Chief), Daniel Shvartsman (Managing Editor), Michael McDonald, Jeffrey Fischer, and Vince Martin (Senior PRO Editors). You can reach us at email@example.com.