SA PRO: Top Long And Short Ideas, Friday May 2

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Includes: AIBYY, AMZKF, PTORF, SALDY, WTW
by: SA PRO Editors

Today's Top Ideas

Released at 5:00 am, May 2. 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. Automodular Corporation (Long, Event/Special Situations): AMZKF appears headed for a liquidation by year's end, with a projected 24% return to shareholders at its current price. Litigation against GM provides upside optionality, writes Alec Mazo.
  2. Allied Irish Banks (Short, Event/Special Situations): Night Heron notes that AIBYY trades as a regular ADR, but its assets are not what investors think. With the ADRs backed only by modest cash and a small amount of AIB shares, 30% downside seems possible.
  3. Spartan Energy (Long, Transformative Acquisition): SPE.V's new management team comes with a stellar track record (generating 6750%+ compound returns across its last three entities), and the acquisition of another outfit's undervalued wells could be the next notch in their belt, writes buysider Josh Young.

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

  1. New coverage: FMX, TNSGF, WATT
  2. Ongoing coverage: ARAY, JCTCF, OMBP, PRAA, TEX, VISN, WMGI

The PRO research library now covers 3,847 stocks. To filter PRO research by sector, industry, market cap, and long/short, use the PRO Dashboard.

PRO ideas playing out

  1. On March 28, Intangible Valuation called Weight Watchers an excellent business at a fire sale price, as the market had simply overshot in driving the stock down. After a huge earnings beat Thursday, shares are +20% to date. Read article »
  2. Value Digger called out Salamander Energy in October, saying its low price was due to the market's misunderstanding of its 2012 results. The stock is now +37.1% 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.