This company operates mines in Central Asia and Australia. The thesis for the short involves a special situation involving mismanagement by the company and board. The company needs financing and is spending a tremendous amount of cash on Capex. Attached are also a few special treats. Ivanhoe Mines (IVN) Share Price: C$9.4 Intrinsic Value: C$6.2 Business description...
This is the a vice stock (nothing racy though), so for people opposed to investing in ‘sin’ companies, read no further. For anyone else interested…This stock should generate a massive amount of FCF in upcoming years. Additionally, the stock is cheap currently and has a bit of a moat. Corrections Corporation of America (CXW) Share...
We did not discuss the potential fraud that we think this company might be committing, but putting that aside and assuming this company is not fudging its financial statements we still see it as a great short due to the inflated value of assets on the balance sheet. Gladstone Commercial (GOOD) Share Price: $ 16.11...
This mid cap company which develops some tech products (easy to understand), is trading at a significant discount due to lack of institutional coverage, and the markets short term re-action to temporary disruption from Thai floods and Japanese tsunami. FEI Corporation (FEIC) Share Price: $ 46 Intrinsic Value: $ 75 Business description and background: FEI Company...
This is a large cap foreign stock. There is sell-side coverage but we thought the idea was so compelling what we made an exception to our rule of trying to cover names with little coverage. Using our very conservative valuation metrics as usual we still see a 100% upside for the stock. The idea came...
This is a foreign company with a large market cap and ADR, but surprisingly little sell side coverage. We used super conservative estimates and concluded there is a 40% upside. Based on P/E of 6, EV/EBITDA of 3.7 and a large dividend yield, low debt load, we see a very strong compelling value play here....
We believe that this healthcare company with multiple divisions has a 40% upside using very conservative assumptions (as usual). The company is also trading at a lower p/e, p/b and p/s than most comps. Covidien PLC (NYSE:COV) Share Price: $53 Intrinsic Value: $73 Business description and background: Covidien Public Limited Company develops, manufactures, and sells...
London Based Drug Maker, with 65% Potential Upside. We believe that the market drove down this company to an irrational level, due to its exposure in MENA. A few catalysts are discussed, which can bring this undervalued company back to a more rational valuation. Business description and background: Hikma Pharmaceuticals PLC engages in the development,...
Short idea, large French company (has ADR), with increasing capex requirements for all segments. Company is under watch from Moody’s for short downgrade, which we believe will occur based on our forecasts. Company is trading at 35% premium using conservative estimates. Veolia Environnement American Depositary – VE, which is also the ADR ticker. Business description...
We present a Canadian company which we believe has a 120% upside based on our calculations of intrinsic value. The company is an international oil and gas exploration company, with a market cap of close to $400 million. We believe that the market does not see the value in the valuable assets the company has...
