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Contrarian, deep value, long/short equity, special situations

Steel Excel - Shell Company Turning Into Profitable Business

Steel Excel (OTCQB:SXCL) is a holding company / acquisition vehicle owned and managed by an activist value investor with a good track record Warren Lichtenstein. Half of company's market value is in net cash and Steel Excel also has $146m in federal and $164m in state net operating losses (NOLs) that are likely to generate material tax savings in future. Company is already returning significant amount of capital to shareholders through buybacks (8.5% of market cap during 2013).

Following Black Hawk acquisition in Dec 2013, operating cashflows are due to increase by 70-80% during 2014. This improvement in operating performance will be reflected already in Q1 2014 results due in May.

Conservative sum of parts valuation indicates 25%-30%...

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