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

Hollywood Media: Liquidation With Significant Upside Potential

Hollywood Media (NASDAQ:HOLL) was covered as a Top Idea late last year. A number of events occurred since then that make the company more attractive and more risky at the same time. Risk tolerant investors could see a substantial upside.

Hollywood Media's main assets are 34% ownership of and $23m in cash. The company also has an Intellectual Property segment, which generates minimal revenues ($0.4m in 2013) and therefore I consider it to be irrelevant from the valuation perspective. Hollywood Media currently trades with market cap of $28m, only $5m above its cash position and has no debt.

Settlement of the lawsuit

In Nov 2013 Hollywood Media finally settled a two-year-long lawsuit against AMC regarding exclusion of...

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