A New Deep Value Opportunity Is Coming Soon
You Get Paid to Own This Decent Business After Indiscriminate-Like Selling.
Dear fellow investors and readers,
I am currently accumulating a position in a company that has become simply too cheap to ignore after what appears to be indiscriminate selling. Real Early Buffett-kind of type!
The situation is so extreme that investors are effectively being paid to own what looks like a very decent, profitable operating business. On conservative assumptions alone, the operating business could reasonably be worth around 100% more than today’s valuation - and that’s before factoring in any upside from improving profitability.
Opportunities like this do not appear often, especially not in businesses with recurring revenue, contract visibility, and a solid balance sheet.
I will be sharing the full investment thesis very soon. Given the stock’s limited liquidity and the nature of the opportunity, this idea will remain paywalled.
If you want access - and would like to support my work - make sure to secure your subscription while the 20% discount is still available.
Some of these ideas move so fast that I don’t even get the chance to write them up in time. Two ideas I was preparing to publish here are already up 72% and 250% year-to-date. Both are highly illiquid, which means once they receive the necessary market attention, they can reprice quickly.
I may still write them up depending on how they develop - but as often happens in this space, the biggest moves can occur before the full thesis is even published.
Beyond this current opportunity, I am also working on a restructuring case and another idea (value growth) trading at just 7x EBIT, featuring a 17% shareholder yield, +80% operating margins, and solid growth.
Stay tuned and enjoy the weekend!
Best
Anders
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The Bargain Newsletter is a publication and only for informational and educational purposes and does not constitute personalized investment advice, a recommendation, or a solicitation to buy or sell any security.
Do you think the biggest challenge with these "early Buffett" illiquid plays is less about the business itself and more about the "patience risk"—where the stock stays disconnected from its fair value for years simply because it lacks a catalyst to wake up the market?
I’ve subscribed and would be happy to support each other. :)
Jorrit