View as an RSS Feed
PRO Top Ideas
Top Ideas are high-conviction long or short ideas focused on market mispricings with asymmetric risk/reward profiles.
Radcom: Product Success And Operating Leverage Will Drive Upside
- Radcom is at the cusp of significant earnings growth due to three key variables: (1) revenue growth; (2) gross margin expansion; and (3) fixed operating expenses.
- A transition to a software-driven model via new product offering - MaveriQ - is rapidly expanding gross margins coupled with well-contained, fixed operating expenses.
- The Q2 earnings release and conference call confirmed points (2) and (3) above. Recently announced contract wins should provide the last leg of the value thesis, revenue growth.
- Radcom's share structure includes only ~8 million shares, about 40% of which are held by two insiders, Zohar and Yehuda Zisapel. Place limit orders, expect volatility.
Overstock.com: A High Conviction Idea With 150% Upside
- Overstock.com is trading at a wide discount to my estimate of private market value.
- Management is introducing higher-margin service offerings such as Supplier Oasis and an insurance broker which should lead to incremental margin expansion.
- Clear tailwinds in eCommerce, a capital-light operating model and optionality in terms of monetizing developed in-house software and accretive capital allocation provide downside protection and significant upside potential.
Image Sensing Systems: An Undervalued Opportunity In The Intelligent Traffic Solutions Industry
- High margin royalty income protects downside and provides upside potential.
- License Plate Recognition ("LPR") hardware/software solutions offer upside optionality.
- Management has multiple levers to drive cash flow generation and profitability.
- Ongoing FCPA investigation creates uncertainty; 2013 earnings results hampered by non-recurring professional services costs. Management believes all FCPA related expenses are finished except for potential fine.
- Image Sensing Systems is a takeover candidate; the company adopted a shareholder's rights plan in 2013 to avoid being acquired at a discount.
Ascent Capital Is Unmonitored Even With A 20% Free Cash Flow Yield
- Ascent Capital is a holding company which has undergone considerable change; now, its primary asset is 100% ownership of Monitronics, a home security services and home automation business.
- Monitronics operates in a fragmented market, characterized by customer acquisition costs, highly recurring revenue and a capital-light business model.
- Low penetration rates and opportunities to sell adjacent, value-added services such as home automation provide growth opportunities.
- Recent sell-off and solid earnings report create excellent buying opportunity before the market re-rates recent, accretive acquisition of security network.
- Vitacost.com Is A Compelling Risk/Reward Before Earnings
- Genesis Land Development: A Corporate Governance Led Turnaround In Progress
- Rosetta Stone's Share Price Is Speaking Volumes
- Gilat Satellite Networks' Shares Present A Buying Opportunity
- Prisa: Significant Catalysts Ahead
- Exchange Income Corp.: Undervalued Canadian Holding Company And 8% Yield
- Cyan Shares Are Cheap
- Time To Take A Look At Sears Hometown And Outlet Stores Again
- Power Assets Holdings: A Low-Growth Business, A High-Growth Business And A Catalyst
- Societe D'Edition Canal Plus: A Low-Risk Bet On Further Vivendi Restructuring
- Dundee Industrial REIT: Another Compelling Dundee Offering
- Canadian Apartment Properties REIT: Become A Landlord Without The Hassle
- An Interesting Turnaround Is Happening At Cincinnati Bell
- Dundee International: A Cheap German Real Estate Play
- Dundee REIT: A Cheap Canadian Real Estate Play
- Orange Is The New Green
- Glacier Media: Shares Are Cold, Product Creating Hot Investment Opportunity
- The Margin Expansion Story At Hillshire Brands Makes Shares Attractive
- Maple Leaf Foods Looks Like A Compelling Buy Amidst Its Restructuring
- Interactive Brokers: Looking For A New Broker, I Found A Compelling Investment
- Does The Best Brookfield Come In A Small Box?
- Brookfield Office Properties Is An Out Of Favor Real Estate Play
- It's Not Too Late To Capitalize On The Real Estate Recovery
- Read Seeking Alpha, Consider Investing In TheStreet
- Consider Taking The Last Few Puffs Of The Ambassadors Group 'Cigar Butt'
- Indosat Is The Baby That Was Thrown Out With The Bathwater
- The IP Value At RealD Is The Real Deal
- No Gambling Necessary When Investing In Lakes Entertainment