Whopper Investments
Deep value, special situations, event-driven, arbitrage

Despite Run, ALJ Regional Holding's Deal Making Offers Continued Upside

Late last year, I posted an article that discussed ALJJ's new Faneuil acquisition. I thought the acquisition was a game changer and that, with shares trading just over $1.00, the market was underestimating the potential of the deal. Under a year later, ALJJ (OTCPK:ALJJ) has proven to be a homerun, with shares up almost 150% to today's prices of over $2.50 a share.

But despite that massive increase in share price, shares today remain quite depressed, and the path to a higher share price seems much clearer now than it did at deal time.

The reasoning here is simple: since the acquisition, Faneuil has seen significant growth that has increased its value, but because of some temporary...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details