real-time news and commentary for investors
Monday, Nov 4
Seeking Alpha moves stocks
- The B-class stock of National Research Corporation (NRCIB +5.9%) continues a big move following SA Pro's Christopher Owens on Wednesday making the case for their massive undervaluation.
- Mr. Market has seriously misjudged the potential for National Research to be acquired (which wouldn't be good for the B-class shares), says Owens. Instead, he argues, the new structure was undertaken to allow the CEO to monetize some holdings while maintaining voting control, and for the creation of a non-dilutive acquisition currency (the A-shares).
- If Owens is right, the B-shares - with voting superiority and entitled to 6x the dividend of the A-class - should trade at 6x the level of the A-shares, making them a potential 3-bagger with limited downside.