PRO Top Ideas
Top Ideas are high-conviction long or short ideas focused on market mispricings with asymmetric risk/reward profiles.
Nautilus: Robust Early-Stage Cash Growth, New Products, And Secular Trends Fuel Strong Gains
- Nautilus is in the early stages of a strong growth cycle after restructuring its business after the financial crisis.
- Several new product launches and the success of its new MAX Trainer device in early 2014 have the potential to accelerate the growth trajectory.
- Fear about this stock hangs over investor sentiment as memories of its epic decline leading up to the financial crisis linger after its turnaround.
- Strong free cash flow indicates an estimated valuation 76 percent higher than current share prices.
- Macro tailwinds provide Nautilus with fertile target markets for its products for years to come.
Lands' End: Growth Strategies, Free Cash Flow, And Short Interest Driving Shares Higher
- Lands' End shares distributed in a spin-off to investors in April 2014 after 12 years in deep freeze as a subsidiary of Sears.
- Lands' End is currently pursuing compelling growth strategies now that it has independent access to capital and credit markets.
- After 12 years as a subsidiary of a domestic retail operation, Lands' End can now pursue international opportunities for overseas distribution in previously untapped markets such as China.
- Strong free cash flow offers the potential for shares to gain 72 percent in the next 36 months.
- Shocking 85 percent of the estimated effective free float shares are held in short positions.
- Mason Graphite: Graphene Revolution, Lithium-Ion Battery Growth, And China Supply Woes Offer A Compelling Opportunity
- Points International: Phenomenal Growth, Strong Cash Flow, And Potential Takeover Target
- CBOE Holdings: Strong Growth, Large Moat, And A Call Option On Volatility
- Signet Jewelers: Outlet Malls, Ultra Acquisition, And Macro Tailwinds Fuel Extraordinary Growth
- Inter Parfums: Opportunities With Cash, New Brands, And High Growth
- Discover Financial Services: Set For Growth With New Strategies And Network Partnerships