Special Situations
Long/short equity, special situations, value, event-driven

Blucora: A Heavily Discounted Portfolio Of High-Growth Assets

This is intended to be a very timely and opportunistic write up. I am writing today because the valuation at Blucora (NASDAQ:BCOR) has reached absurd levels, which prompted me to re-examine the name and ultimately re-establish a large position. At the time of writing, you are able to purchase shares of BCOR at a 4.6x EV multiple of forward EBITDA (or 21% ROIC). I believe that the fair multiple for this business is in the 8-9x range, implying a 55% return to the fair price, based on current fundamentals.

This opportunity exists because of the blended impact of 2 events:

    1) a 'short thesis' was published on the name in February which alleged that the company...
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