Comverse Inc: The Transition To Positive Free Cash Flow Is Upon Us
- Former spin-off and orphan stock that has had many passed transgressions. Largely misunderstood accounting issues cloud the firms true operating performance.
- New management and activist shareholder appear motivated to shed significant operating expenses and expand margins closer to peer average.
- New product offerings appear poised to leverage existing install base while appealing to a whole new market of potential clients due to the easy install process and SaaS model.
- Valuation points to an asymmetric return profile with our bear-case scenario showing just 8% downside.