SumZero News Archive

  • Capital One: One of the "Last Remaining Cheap Banks"

    Published: March 13, 2014

    Capital One is a compelling investment because (i) it has attractive financial metrics, (ii) they are beginning to return capital to shareholders, (iii) it has a quality credit card and auto lending business, which is primarily driven by a strongly quantitative culture, and (iv) they are growing ...

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  • Massive Secular Tailwinds Drive Big Value in NCR

    Published: March 06, 2014

    NCR is a leading provider of hardware, software, and services that allow businesses in the financial services, retail, hospitality, travel, and telecommunications industries to connect, interact, and transact with their customers. The stock has been trending downward for the past three months, of...

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  • RIG Has 50% Upside on Multiple Catalysts

    Published: January 31, 2014

    Transocean is a deep value stock with catalysts on the horizon. The stock pushes a 6% Dividend Yield and improving Balance Sheet. Limited risk with 50% plus upside.

    Over the past several weeks we have seen multiple downgrades amongst the Sell-Side into earnings on Transocean. No surprise there...

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  • JC Penney: So Bad, It's Good (Again)

    Published: January 23, 2014

    Buy J.C. Penney (JCP) current price 6.75 with expected return of 110%-120% over 12 months. Target price of $14 for 12 months.

    Main Points
    • Easy comps and Improved Margins will lead to Positive Momentum
    • Many Near Term Catalysts
    • No Liquidity Issues/ Manageable Balance Sheet/ As...

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  • SumZero Takes on Seth Klarman (Baupost Group)

    Published: January 09, 2014

    In 1982, Seth Klarman founded the Baupost Group with just $30mm. Now with current assets under management surpassing $30bn, Klarman has become one of the most successful hedge fund managers in the world. This week we take a look at some of his recent moves and how SumZero sentiment relates to tho...

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  • A Pair of Quick Ideas: General Mills & ADT

    Published: January 02, 2014

    Quick Idea #1
    Long on General Mills (GIS:US)
    Contributor: Carl Aschenbrenner, Formerly at Stonebridge Capital Management, Inc.
    Current Price: $49.40.
    Target Price: $60.00.
    Expected Return: 21.0%.
    Timeframe: 2+ years.
    Elevator Pitch: Healthy mix of snack foods favored by ag...

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  • Coach Is (Or Should Be) on Buffett's Watch-List

    Published: November 08, 2013

    The investment idea came to my attention as it survived one of my favorite screens based on the work of Graham and Dodd in the Intelligent Investor, which looks for cheap valuation, a healthy dividend, and a strong balance sheet:

    • Earnings Yield > 2.0x AAA Corporate Yield
    NTM P/E = 13.6  E/...

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  • New Brands Put Wolverine Stock in Play to Double

    Published: October 17, 2013

    I recommend initiating a long position in Wolverine World Wide ("WWW" or the "Company") at today's price of $58.88 (10/3/13). WWW shares present an opportunity to invest in a high-growth, diversified, branded footwear company with several iconic brands (e.g. Sperry, Merrell, Keds).

    The market ...

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  • Oracle Is Misunderstood and Fully Mispriced

    Published: October 04, 2013

    Oracle is a great company at a great price. As management continues to return their $14bn in free cash flow to shareholders in the coming years the stock should re-rate materially higher.

    Thesis Key Points
    •Critical technology for many of the world’s largestcompanies
    •Very sticky biz / signi...

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  • Fila Korea: The Falcon Is Now the Falconer

    Published: September 06, 2013

    Big things can sometimes come in small packages

    Take, for example, 8th-grade Chinese golf prodigy Guan Tianlang. The 14-year-old announced his presence to the golfing world this spring by becoming the youngest-ever participant in the sport's most prestigious tournament: The Masters. And he bec...

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  • KKR's Faith in Bauer Suggests Bright Future Ahead

    Published: August 22, 2013

    The investment case for Bauer (BAU) is based on:

    1. Very strong competitive position (downside protection)
    2. Decent organic growth
    3. Strong capital allocation
    4. Leading to mid to high teens EPS growth
    5. Trading at less than 1yr 10x forward earnings / free cash flow

    There is no catal...

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  • Bloomberg TV: SumZero Launches Compensation Database

    Published: August 20, 2013


    SumZero recently launched a new feature on the buyside site called SZ Compensation, which is a reciprocity-based database designed to help buysiders understand personal income trends within their industry. The new database is a fully-anonymized platform (the only such feature on SumZero) allowin...

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  • VIC Special: Should Smithfield Be Sold Whole or in Parts?

    Published: July 18, 2013

    That's the question from provocative money manager Jeff Smith, head of Starboard Value - who by the way will be presenting at the September Value Investing Congress. With a 5.7% stake, Starboard is the largest shareholder in Smithfield Foods (SFD), the world's top hog farmer and pork producer. ...

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  • CBS Opportunity on Spin-Off/REIT Conversion

    Published: July 18, 2013

    In January 2013, CBS announced plans to divest its outdoor division. CBS plans to sell the international outdoor business as well as IPO the domestic outdoor business after a planned REIT conversion by late 2013.

    The Domestic Outdoor business is on pace to earn about $400m in EBITD...

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  • Special PDF: Serious Inefficiencies in the Valuation of Shale Assets

    Published: July 03, 2013

    SumZero member Nicholas Snyder (Union Square Research Group) offers deep, energy-related insight in this PDF which focuses on wide-spread inefficiencies in the valuation of shale assets. Using his considerable industry knowledge, Snyder offers what can be described as a how-to primer for those at...

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  • Long-Forgotten Vonage Has 65% Upside

    Published: June 20, 2013

    Buy VG a $627mm mkt cap provider of low, cost, high quality communications services such as voice, messaging and phone (landline and mobile) around the world over the web using VOIP to Earn a 62% Return over the next 18-24 months

    Consensus’ 2014E EBITDA $133mm overlooks how much Vonag...

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  • See the Forest for the Trees: Buy France Telecom

    Published: June 06, 2013

    "The three most important words in any investment process are" Margin of Safety ", ie, the difference between an asset’s intrinsic value and the price at which we buy. When pessimism settles, in the economy, at a sector or concerning the performance of a particular company, it is natural for pric...

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  • A Bold Refute to Highfields' Short Call on DLR

    Published: May 31, 2013

    At the Ira Sohn Conference earlier this month, Jonathon Jacobson of Highfields Capital Management outlined a short case against Digital Realty Trust (DLR) that was one of the best we had ever heard. Since then (and at the time of this writing), the stock has declined about 9%. DLR is heavily shor...

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  • SumZero Top-Rated Idea: Long on Sears Hometown

    Published: May 24, 2013

    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 tha...

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  • Turn-Around Ruby Tuesday Is a Compelling Value Play

    Published: May 16, 2013

    RT is a value play that is in the midst of a recovery/turnaround. It has a great safety net by monetizing its asset value, a strategy that management has begun to use with repeated success. RT delivers consistent cash flow yield and continues to paydown debt while still investing in new channels....

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  • Fair Warning: Crocs Is a Legit LBO Target

    Published: May 08, 2013

    Why does CROX trade at ~$16 per share today? In 2007, the stock was heavily shorted as many people thought the business was a one-hit wonder. By the end of 2008 the business was $1/share, with its auditors issuing a going-concern qualification, citing operational losses among other things.


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