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Blucora's Strong Fundamentals Obscured By Overblown Headwinds

Elevator Pitch

Blucora (BCOR) is a fundamentally strong company with high cash generation potential. While its main business may be stagnating, it has quickly growing and highly profitable new segments that are very promising. This potential is hidden by a string of bad news over the past year that over-compensates for the reality the company faces.

Company Description1

Blucora operates several somewhat disjointed business lines. These include Search and Content, Tax Preparation, and E- commerce.

Search and Content are web services such as search engine aggregators and the newly acquired HowStuffWorks.com. This segment accounts for the majority of revenues. This business represents the assets of InfoPath, which was the entire company until approximately two years ago. This...

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