On May 23rd, Whopper Investments published an excellent article on USA Truck (NASDAQ:USAK) detailing recent turnaround and activists efforts to unlock value at the firm. In researching the company, I found additional points of value for the firm. USA Truck appears undervalued relative to competitors based upon assets, and absolutely based upon replacement value. Additionally, after analyzing normalized cash flows, it appears the market is pricing in only a muted recovery, well short of industry averages and company stated goals. I believe a conservative estimate for the intrinsic value of shares is $25, based upon a blend of relative and absolute asset valuation and DCF valuation.
Note: I will largely avoid restating points articulated by Whopper, unless...
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