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SIGA Technologies: Uncovering Hidden Value In Bankruptcy
- After an $195 million unfavorable court ruling against SIGA, the company's stock has been slammed and SIGA has filed for relief under the Chapter 11 bankruptcy code.
- Investors are most likely selling on panic and ignoring that SIGA's bankruptcy is non-insolvency driven, and primarily filed to allow an orderly appeal against PharmAthene.
- With only $2.5 million of outstanding debt, $110 million of cash on the balance sheet, and another $165 million expected, SIGA's equity should remain unscathed in a worst-case scenario.
- As the government's primary supplier of the Smallpox antiviral, SIGA has tremendous upside as it looks to renew its contract sometime over the next year or two.
Knight Therapeutics: Minimal Downside For This Misunderstood Company
- Knight Therapeutics is a spin-off run by former Paladin Labs CEO, Jonathan Goodman, who grew Paladin's share price 100x over approximately 20 years.
- With Mr. Goodman's excellent track record, Knight has the potential to increase market value by many multiples over the next few years as it acquires and licenses various pharma products.
- Downside risk is minimal, with Knight trading at only a 5% premium to its downside valuation.
- Due to the large volume of transactions completed after the third quarter, many screeners do not accurately reflect Knight's current value.
PDF Solutions: More Room To Run Following Recent Stock Appreciation
- As predicted it my previous article, PDF Solutions was able to re-sign its two problematic contracts relatively quickly, resulting in a 30% jump in the stock in one day.
- The stock still has more then 65% upside as its financials should begin to re-calibrate starting with its next earnings report on Feb 5th.
- Investor pessimism should begin to disappear as the company continues to exceed expectations.
PDF Solutions: Potential For A Quick Double Following Market Overreaction
- Down 50% over the past year, PDF Solutions has the capability to double in the next 12 to 18 months.
- The company is well positioned to take advantage of the growing gap between fabless providers and foundries.
- PDFS presents a very asymmetric investment opportunity with only 4% downside in a worst case scenario.
Ascent Capital: Industry Consolidation, Low Valuation, And Potential Acquisition Candidate Warrant 65%+ Upside
- Down 30% from its 52-week high, investors are underestimating the earnings power of this free cash flow machine whose financials are obscured by accounting.
- Industry consolidation and the growth of the smart home provide numerous growth opportunities for this asset-light company.
- Management could be setting the company up for a sale to a large cable company looking to expand its offerings into security and home automation.
- Trading at a 32% discount to ADT, and only 10.7x of my 2015 steady-state free cash flow estimate, shares could hit over $100.
- Wabtec Corporation: Growing Faster Than The Market Rally
- Don't Buy Sony Over The PS4 Hype
- Lockheed Martin: An Excellent Long-Term Dividend Play
- Why Western Union Will Destroy Its Competition
- Pitney Bowes Is A Ticking Time Bomb
- EZCorp Filled With Value
- Coach: Undervalued And Growing Rapidly
- Google's 1 Serious Problem
- Gentex Corp: Undervalued With Huge Potential
- Berkshire Hathaway: Undervalued And Ready To Jump