Monday Never Sleeps: Big Ideas Edition

By: KS Anthony | Published: August 24, 2020 | Be the First to Comment

Investments with 100%+ opportunity: View Entire List Here

1. GFL Environmental (GFL:US - Short)- 100% expected return: "Massive Roll-up In The North American Waste Management Sector, Run By A CEO With Many Controversial Connections. FCF Burn 60% More Than Appears And Large Debt Load. Financial Control Issues."

2. Absolute Software Corp (ABT: CN) - 104% expected return: "Global Cloud Software Leader in Endpoint Cybersecurity and Data Risk Management Solutions"

3. Vertiv Holdings (VRTV:US) - 126% expected return: "SPAC which purchased Vertiv from Platinum Equity with former CEO of HON at the helm. Great secular growth margin improvement story."

Ideas from Top Ranked Portfolio Managers: >View Entire List Here

1. New Relic Inc (NEWR:US - Short) - 34% expected return: "We recommend avoiding NEWR despite its seemingly attractive EV/Sales multiple; it lacks a sustainable competitive advantage, faces an increasingly competitive market and risks obsolescence."br>
2. Flex Ltd. (FLEX:US) -42% expected return: "Flex is an international EMS priced for continued low ROIC. Yet margins are improving under a new CEO, despite poor end-market conditions. Self-help and valuation expansion drive the case."

3. KBR (KBR:US) - 104% expected return: "High quality, misunderstood business; market is anchored to legacy business, which is no longer a meaningful contributor; derisked earnings profile; trades at <12x EPS"

Ideas highly rated by Hedge Fund Portfolio Managers:
View Entire List Here

1. Encore Capital Group (ECPG:US)- 25% expected return: "In general, the current macro scenario is when you want to own a collection company. Consumers are relatively healthy despite increased unemployment, as evidenced in the record collections quarter ECPG printed in 2Q."

2. Crowdstrike Holdings (CRWD: US) -78% expected return: "A Hyper Growth 2 Bagger; $100 stock with upside to $200"

3. Edison International (EIX:US)35% expected return:"Regulated utility trading at big discount to comps due to misunderstood/overly discounted wildfire risk. Big, liquid, safe.

What ideas have the Portfolio Managers looking at the most over the past 30 days?

1. Dell Computers (DELL:US) - 43% expected return:"Investing in Dell today is a case of "heads I win the jackpot, tails I don't lose much"

2. Spotify (SPOT:US) - 24% expected return: "Spotify is dominating the music streaming space and is now executing on the second leg of its strategy - podcasts."

3. Lazydays Holdings Inc. (LAZY:US) - 145% expected return:"RV dealer Lazydays trades below 3x EV/NTM EBITDA with massive tailwinds, solid public/private multiple arb opportunity, peer camping world at 11x fwd EBITDA. Under-followed should re-rate"


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