I had submitted this idea for my VIC application. It has run up a bit since then but still represents an interesting value proposition. The write up can be accessed below:
I do not hold a position of employment, directorship, or consultancy with the issuer.
I and/or others I advise hold a material investment in the issuer's securities.
|Subject||RE: RE: RE: RE: Author Exit Recommendation|
|Entry||11/07/2013 08:24 AM|
Incidentally, I think there is significant upside still in this name. Even using your own assumptions, a spin-off of the RC biz will like unlock $20/shr Plus/shr. puts all the g and a at the remaining biz. that unlocks mid teens per share at static discount rates on rc cash flows and i think the implied irr likely drops significantly at that point. also the mkt then will have to put some value on Mprove (EC business) and other new products. Pretty hard to think that this bit of financial "engineering" doesn't get the RC business alone to $60+ per share alone using these assumptions. Rollout is accelerating and momentum is building........ finally!