Arena Group: From Turnaround To Growth Story

Jeremy Blum
9.69K Followers

Summary

  • Arena Group has completed a dramatic turnaround, shifting from near-bankruptcy to solid profitability by changing its business model and eliminating major liabilities.
  • The company is now a growth story, guiding for 56% revenue growth this quarter, with scalable operations, strong catalysts, and a proven majority owner backing expansion.
  • Despite recent stock gains, Arena trades at just 10x likely earnings and remains undiscovered due to lack of analyst coverage and its NYSE American listing.
  • My 1-year price target is $9.75, with much further upside possible if the new performance publishing model continues to deliver.

Wide shot stadium crowd standing and cheering baseball team during game

Thomas Barwick/DigitalVision via Getty Images

My most successful strategy has been buying companies that have significantly improved without the market yet catching on. I refer to these as turnarounds. The problem is, I only find a handful of these each year.

This article was written by

9.69K Followers
Tipranks.com shows stock returns from my articles have averaged over 30% over a one year period. I was the Credit Manager for a mid-sized publicly traded bank and retired early in 2013 due to success in the stock market. Despite never working in the industry, I took and passed the CFA Level 1 exam. I usually only write about stocks that are my best ideas and have a position in. About 50-75% of my portfolio are deep value stocks, primarily small caps.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AREN either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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