PRO Top Ideas
Top Ideas are high-conviction long or short ideas focused on market mispricings with asymmetric risk/reward profiles.
LivePerson: From Chat To Data Analytics, Transition Exit Upcoming
- Market is underestimating the potential penetration of installed base with upgraded platform LiveEngage 2.0.
- Market is not fully appreciating LPSN’s large addressable market opportunity in shift from phone to chat.
- Market is overlooking LPSN’s potential in data analytics by assigning a customer service like multiple.
- Our FY14 estimated PT of $16.25 represents potential upside >35%.
Zygo: Overlooked, Cash-Heavy, And Ready To Rebound
- Tailwinds in key markets and a positive shift in product mix benefit bottom line results.
- Hedge fund MAK Capital One (holding ~23% of ZIGO shares) recently took over as Board chairman; an unlocking/creation of shareholder value expected soon.
- Zero sell-side coverage of ZIGO shares has aided an inefficiency gap; any uptick in investor awareness could narrow the gap.
- Limited downside, with 30% of MV in cash and consistent institutional support at ~1.1-1.2 tangible BV.
- Our estimated CY2014 price target of $22 represents potential upside of 40%.
- Emcore: Activism, Sum-Of-Parts Analysis Suggest Significant Upside
- NeoPhotonics: Blossoming In The Need For Speed
- RPC, Inc: Well-Positioned For Increased Completion Activity
- Sigma Designs: Appealing At 2x Cash With Catalysts Impending
- Callidus Software: Getting All Dressed Up For The Acquisition Ball
- Bravo Brio: The Little Italian Restaurant That Could
- American Woodmark: Coming To A Kitchen Near You
- Health Insurance Innovations: Reform Sets Stage For A 2014 Home Run
- Art's Way: Micro-Cap With Divestiture Opportunity