The initial taste in people’s mouths when they hear of a Sears’s spinoff is what initially drew us to the situation. Over the last seven years, many value investors have fallen into the “SHLD” trap hoping that the market will value the assets on a “sum of the parts” / liquidation value higher than where they bought it for. This has been a fool’s errand because Eddie Lampert – the chairman of Sears Holdings Corp. (SHLD) and CEO of ES…
Ruby Tuesday is a strong value play that is in the midst of a turnaround. There's a built-in safety net thanks to in store sale leasebacks, consistent cash flow yield, continuous debt paydowns. There's new management in place, new conce…
This is an opportunity to own LUV for 6x airplanes (capacity) per $ invested since the peak of last cycle. So the market is offering the opportunity to own six times as many airplanes (capacity) per dollar of investment. We're seeing im…
A private equity buyer could take Croc’s private at ~8.5x EBITDA, with modest leverage. Including off-balance sheet operating leases, the lease adjusted leverage is only 2x today, that could support at least an additional 4x. The PE fir…
We recommend investors buy Hertz shares with a 12-month target share price of $36, which represents ~52% upside to the current share price. There are four main points to our investment thesis: 1) The market significantly underestimates…
Jeffrey Campbell, a former analyst at Suffolk Capital Management for 11 years and current Managing Director at Rosenblatt Securities in charge of Energy, has composed a 60-page memo exclusively for SumZero members on fast-growing demand…
I recommend buying CDS or shorting stock on JC Penney. Under recently fired CEO Ron Johnson, the company has burned cash ($820 mil LTM) and just had to drawn $850 mil on its revolver.
Wide diversification is only required when investors do not understand what they are doing. Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.” –Warren Buffett, Berkshire Hathaway
Wells Fargo TARP warrants presents an interesting, cheap, low risk way to leverage on Wells Fargo excellent culture and financials and profit enormously from the bank stock appreciation.