SA PRO: Top Long And Short Ideas, Thursday March 20

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 |  Includes: ABC, GSB, KATE, PVAHQ, RAVE, SXCL
by: SA PRO Editors

Today’s Top Ideas

Released at 5:00 am, March 20. PRO subscribers get an exclusive early look at these ideas for 24 hours. Top Ideas often move stocks during the initial 72 hours after publication.

  1. Amerisource Bergen (Short, Contrarian): The effects of the Affordable Care Act are being seen at ABC, as margins and cash flow deteriorate. Legal issues could be the catalyst for 30%+ near-term downside, writes Short Bias.
  2. GlobalScape (Long, Growth): Recent data security breaches provide tailwinds for GSB, with the cheap valuation and incentivized insiders suggesting 70%+ upside over the next two years, says Soldier of Fortune.
  3. Pizza Inn (Short, Value): PZZI's valuation rests on pie-in-the-sky hopes for its growth plans, leaving 50% downside in share value, writes Intangible Valuation.
  4. Steel Excel (Long, Value): SXCL's recent acquisition of Blackhawk Energy means significant growth which has not yet been reflected in the share price, says New Capital.

Academic Study Shows Seeking Alpha's Predictive Power

  • A recent academic study found that Seeking Alpha articles and comments were predictive of future stock prices and earnings surprises.
  • These findings held over all time-frames studied, from one month to three years.
  • The study did not find that traditional media, sell-side research, and other social platforms had similar predictive value.
  • For more details, read the study »
  • Read The Wall Street Journal's article about the study »
  • Read Seeking Alpha Editor-in-Chief Eli Hoffmann's summary »

Today’s PRO research (tickers link to new articles)

  1. New coverage: CFX, FFIV, HSII, MPAA, NADL, RRTS, SPR, VRSN
  2. Ongoing coverage: ASTM, ATU, BRSS, EPAM, ESL, MPO, QTWW, SDR, TNXP

The PRO research library now covers 3,636 stocks. To filter PRO research by sector, industry, market cap, and long/short, use the PRO Dashboard.

PRO ideas playing out

  1. On March 3, Helix Investment Research said full focus on the namesake brand at Kate Spade & Company would lead to a higher share price. Shares are +16% to date. Read article »
  2. Energy expert Richard Zeits' first call on Penn Virginia returned over 100%; he reiterated his recommendation in December, seeing further upside from increasing well production and productivity. The stock is +50.3% since. Read article »

To Come Today
Don't forget to check your SA PRO dashboard for the latest additions to our Research Library.

SA PRO Editors
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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 pro-editors@seekingalpha.com.