Making his debut on Real Vision’s Trade Ideas, Cobia Capital’s Jeff Meyers brought an undervalued affiliate marketer to the table.
XLMedia (XLM.LN)(OTC:XLMDF) is an affiliate marketer which started in the online gambling universe, acquiring customers for companies like Unibet and Betfair.
Meyers said the company has had “a tough time” over the past couple of years, dealing with changing regulations in the sector. Additionally, it has pulled back the media side of its business as it was not very profitable.
As a result, XLMedia is trading at just three times EBITDA. “If you bought the whole company with that valuation, you get paid back in three years,” Meyers said.
Meyers sees upside in the company as its publishing arm continues to grow. He also believes XLMedia as it diversifies into different areas such as consumer finance, and into different regions, including Latin America and the US.
He likes buying XLMedia at current levels, and sees it reaching 120 pence over the next year.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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