Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

NeuStar: Number Portability Contract Win Looks Less Likely, Stock Will Crater, But A Long-Term Opportunity May Be Coming

I first got interested in NeuStar (NYSE:NSR) because it reminds me a bit of Verisign (NASDAQ:VRSN). Like Verisign, Neustar's value is primarily driven by a lucrative government related contract that is holds. In the case of VRSN it operates important backend functions for the internet, while NSR holds the lucrative local number portability administrator (or NPA) contract from the Federal Communications Commission (or FCC). I invested in VRSN when there were concerns about the contract renewal a little over a year ago and the investment worked out great. Given that, I thought perhaps NSR might offer a similar opportunity. After doing a little digging though, I decided that NeuStar is no Verisign and went short the...

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