Apple's Leveraged Management Buyout Potential
- Untapped value can be "manufactured" by Apple at will by simply taking on more debt and with little risk of impacting the company's ability to innovate.
- We estimate that under an "optimal capital structure" the expected value per share is $847.
- With significant cash reserves and massive debt capacity, it's a wonder that Tim Cook has not pursued a leveraged management buyout already.
Long - Premier, Inc.: Newly Traded Company Offers Significant Upside
- A long position provides approximately a 99% chance of 20% return or higher.
- PINC is the strongest performer in generating economic value, relative to peer set.
- Investors have a rare opportunity to get in early before the market prices in the company’s strong economic position.
Bio-Reference Laboratories: High Probability Of Making A 20% Return Or Higher
- 96.8% probability of making a 20% return or higher on a Long position.
- Company generates excess returns for shareholders with robust Economic Value performance and solid competitive position.
- Short Squeeze candidate with a short interest of 27% of shares outstanding and significant capacity to increase leverage, buyback shares and/or payout dividends.
Short - Healthways Inc.: 93.3% Probability Of Making A 20% Return Or Higher
- 93.3% probability of a short making a 20% return or higher.
- Cost of Services Sold as a percentage of Revenue has significantly driven down NOPAT Margin, which has negatively impacted the Return on Capital.
- Declining interest coverage ratio has increased the risk of default, which in turn has increased the Weighted Average Cost of Capital.
- Economic Value performance ranks lowest relative to peer set.
Short ExamWorks Group, Inc.: 90.4% Probability Of Making A 20% Return Or Higher
- 90.4% probability of making a 20% return or higher on a short position.
- Economic Value continues to take a turn for the worse.
- Increased Days Sales Outstanding has negatively impacted the days to convert sales into cash and therefore cash on hand.
- Exhaustive 131.4% run up in stock price in the last twelve months is not commensurate with company's ability to create value, making the stock a strong candidate for a correction.
- Short Squeeze Draws Closer For Questcor
- Go Long Zagg: 94% Probability Of A Short Squeeze
- Why Apple Still Has 84% Probability Of 20% Return In The Next 12 Months
- AutoZone: Skewed Probability Towards The Upside