Seeking Alpha

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.
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