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  • Featured 2009 03 20 papa john s pizza in durham 9fbc490c82

    Why Papa John's Remains a Good Buy

    Published: January 24, 2018

    Papa John's has recently been mired in controversy.  When pressed on the firm's negative performance during a heated earnings call, founder and CEO (Papa) John Schnatter made incendiary remarks regarding recent NFL protests.

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  • Featured 59ea0dd34b6009 55471742 0b56829e6a

    Can Walmart Fight off Amazon?

    Published: October 23, 2017

    Walmart's stock has risen over 25% in the last 6 months.  This has been hugely surprising to analysts, with the company surging past most sell-side estimates.  The retail giant has recently been facing several well-publicized headwinds, which seem to be having to bearing on its stock price.   The...

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  • Featured screen shot 2017 10 03 at 2.12.14 pm 768x428 d91ebc5263

    Post-Bankruptcy School Specialty Could Double

    Published: October 06, 2017

    The finances of school districts nationwide were devastated by the financial crisis.  Local funding for schools, generally based on residential property taxes, collapsed commensurately with property values.  Hundreds of schools were shut down, and tens of thousands of teachers were laid off.   Th...

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  • Featured rite aid 388f14bfe3

    Why Rite Aid Remains A Good Buy

    Published: July 07, 2017

    It's been a tumultuous week for Rite Aid amidst a high profile merger attempt with Walgreens and investigation by the Federal Trade Commission. Investor Brandon Paulson shared a long idea on Rite Aid a few months ago on SumZero, and though his original hope for a merger has been dashed, Paulson ...

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  • Featured cinemark artegon marketplace 03 4b54d33846

    Cinemark Holdings Is Undervalued And Ready For Investors

    Published: February 27, 2017

    The theater industry has been threatened by at-home streaming services like Netflix and Amazon. Because of this competition, the market has moved its interest away from the industry’s biggest players. However, Donald Marchiony believes the time is now to invest in Cinemark Holdings (NYSE:CNK), th...

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  • Featured plnt 4046f99613

    Planet Fitness is a Weak Gym and a Weak Business

    Published: April 01, 2016

    While many who frequent gyms scoff at Planet Fitness as "the gym that serves pizza", according to Ben Axler of Spruce Point Capital in New York, there is also reason to scoff at PLNT:US as an investment. Planet Fitness was able to IPO under the relaxed conditions provided under the Federal JOBS a...

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  • Featured macao casino lisboa at night small 59469652b8

    The New "Big Short" on China Is On

    Published: December 17, 2015

    After years of government stimulus, China has finally begun to experience economic slowdown. While this is no secret to investors, Stanley Wang of Pareto Capital Management in Atlanta has identified what he calls “the Big Short” on the Chinese economy: Macau. Government stimulus yuan are flowing ...

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  • Featured factset large cap contest b45d231a52

    Here Are the 3 Winners of the FactSet Large Cap Contest

    Published: April 15, 2014

    We are pleased to announce the Winners, Runners-Up, and Honorable Mentions for the fourth and final leg of the <strong>FactSet Top Idea Tournament</strong>, the Large Cap contest. We would like to thank everyone who participated, including our esteemed Judges Panel, as well as our partner <em>Fac...

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  • Featured factset best short f9e0d0d0fb

    The Winners of the FactSet Best Short Contest Are...

    Published: October 10, 2014

    We are pleased to announce the Winners, Runners-Up, and Honorable Mentions for the second leg of the <strong>FactSet Top Idea Tournament</strong>, the Best Short contest. We would like to thank everyone who participated, including the judges panel, as well as our partner FactSet Systems for their...

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  • Featured fdo 45e760dbd7

    Heavy Wal-Mart Pressure "Breaking" Family Dollar

    Published: April 24, 2014

    We believe that this premium valuation is due to erroneous expectations of significantly improved earnings in future years through a successful turnaround, and perhaps more importantly, hope that FDO will be acquired by DG, WMT or perhaps even the target of a leveraged buyout. Acquisition risk is...

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  • Featured jcp 55c71c61f1

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

    Published: January 23, 2014

    So Bad Its Good - JCP will stabilize and valuation will come back to reflect ongoing concern. JCP has seen unprecedented same store sales drops as it tried to change its image. This has ended and they have bottomed on the sales losses. If JCP can stabilize sales and margins then they would have E...

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  • Featured wolverine

    New Brands Put Wolverine Stock in Play to Double

    Published: October 17, 2013

    At $58.88/share, WWW shares today trade at 21x 2013 consensus EPS and 17x 2014 consensus EPS estimates. A long investment in WWW shares present an asymmetric risk/reward profile whereby I see an opportunity for compelling returns and minimal risk of capital over a 3 year holding period. I expect ...

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  • Featured bauer

    KKR's Faith in Bauer Suggests Bright Future Ahead

    Published: August 22, 2013

    We have talked to ice hockey players who value BAU equipment at a premium and trust the performance (any feedback from players welcome). The equipment market in ice hockey is a rounding error for Nike et al. The market is roughly $650m in size. It is not worth allocating resources towards due to ...

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  • Featured searshometownstore

    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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  • Featured ruby tuesday

    Turn-Around Ruby Tuesday Is a Compelling Value Play

    Published: May 16, 2013

    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 concepts in development; all while the stock trades at a discount ...

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  • Featured 561717 10151113256886242 161593074 n

    Fair Warning: Crocs Is a Legit LBO Target

    Published: May 08, 2013

    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 firm would need to bring retail expertise in order to help execu...

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  • Featured skul

    Skullcandy Turnaround Could Lead to Short-Squeeze

    Published: February 28, 2013

    SKUL has been a dog, but there is a good chance its net sales deceleration is stabilizing – at least for the next quarter. On the Q3 conference call, SKUL management tightened the FY 2012 guidance to $290-$300M from the previous range of $280-$300M. This is a fairly noteworthy event as $280M in ...

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  • Featured jeff bezos picture

    A Hilariously Compelling Short on Amazon.com

    Published: February 01, 2013

    Let’s start with the base retail business. It reminds me of an old Saturday Night Live skit where a banker explains that his business plan is making change. ‘we’ll give you 5 nickels for your quarter. We can even give you ten pennies for your dime…How do we make money? Simple: Volume!’ Do you rem...

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  • Featured mo 040708e

    Martha Stewart Living: 125% Upside Potential

    Published: December 03, 2012

    We believe Martha Stewart Living is a compelling turnaround story with a very favorable risk/reward profile. While sporting an enterprise value of just $168.0 million, Martha Stewart Living brands include “Martha Stewart,” one of the world’s premier lifestyle brands, as well as “Emeril Lagasse,” ...

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  • Featured jcp

    This Is What Bill Ackman Sees When He Looks at JCP

    Published: November 29, 2012

    While 2012 has been a year of disappointment, there is still very much reason for optimism in the case of the JCP turnaround. While SSS and SSF have declined more dramatically than anticipated, management has succeeded on the cost cutting front and the new JCP, while still very small, has exceede...

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  • Featured abercrombie logo39

    More Gains to Come for Resurgent Abercrombie

    Published: November 14, 2012

    Despite the macro headwinds in Europe, the returns on ANF’s international stores are excellent (35%+ after incremental non 4-wall costs) and its Direct-to-Consumer business continues to deliver healthy revenue growth (20%+) and operating margins (40%+).

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  • Featured adt3

    ADT's Stock Has Been Orphaned; In Need of New Home

    Published: November 08, 2012

    Being relatively easy to model and owning a unique franchise with an established reputation, ADT has multiple paths to reach increased value via achievable rev. growth from the existing subscriber base and B/S recapitalization. Currently, this orphaned equity is likely mispriced due to unclear pl...

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  • Featured 800px carnival inspiration 01

    Consumer Resurrection Bodes Well for Carnival Cruises

    Published: October 11, 2012

    CCL is setting up to outperform. After the tragic Costa incident and as fuel cost pressures abate, CCL will deliver both growth in EPS and FCF into 2013. The company took FCF guidance from flat to $450mm in 2012 and we expect to see almost $2B in 2013. CCL has left significant room to do $2.00 in...

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    Rick's Cabaret Is a Sin Stock Priced for Hot Returns

    Published: July 16, 2007

    RICK just exited Las Vegas (Q3’11), which had been a disastrous acquisition and a drag on numbers since ’08. RICK was losing ~$2 million per year in Las Vegas, which equates to an incremental $0.13 in EPS. By exiting Las Vegas, RICK will also realize $4.9 million in tax benefits (according to the...

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    Don't Overthink How Cheap Procter & Gamble Is

    Published: June 25, 2012

    Generally the purpose of the SumZero site is to present obscure companies trading at significant discounts to their underlying intrinsic values. However, periodically "Mr. Market" undervalues large, well-known, blue-chip, high quality companies. I believe Procter & Gamble (NYSE: PG) is in this ca...

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    Deckers (Nasdaq: DECK) Has 40%+ Upside

    Published: May 30, 2012

    Deckers shares have declined 32% in 2012 as an unusually warm winter negatively impacted boot category sales (consumers postponed boot purchases) and rising sheepskin costs pressured margins. However, Sheepskin costs recently declined 35% from the peak prices and a growing sheep flock in Australi...

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    Featured Idea: Long on Big Lots (NYSE: BIG)

    Published: May 24, 2012

    99 Cents Only Stores NDN agreed to sell itself to Ares Management LLC and Canada Pension Plan Investment Board for $22 a share, in a transaction valued at about $1.6 billion. The multiples paid for the transaction were as follows: P/S = 1.1x, EV/EBITDA = 9x, EV/EBIT = 11x, P/E = 20x. If BIG were ...

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    Quick Pitch: Long on Caesar (NYSE: CZR) Bonds

    Published: September 11, 2012

    CZR

    Contributor: Matthew Stolzar
    Firm: Independent
    Location: New York, NY

    Recommendation: Long unsecured CZR 5.75% 10/1/17 notes
    Timeframe: 2 Years and Beyond

    Quick Thesis
    Caesars Entertainment Corporation (the “Company”), formerly known as Harrah’s Entertainment, is a casino entertainment ...

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    Quick Pitch: Deckers Outdoors (Nasdaq: DECK)

    Published: September 11, 2012

    <em>(The following is an abbreviated pitch pulled from the SumZero community)</em>

    Source: Eden Chen
    Firm: Lightmark Capital
    Type: Hedge Fund
    Location: Los Angeles, CA

    Recommendation: Long
    Recent Price: $68.66
    Target Price: $95.00
    Timeframe: 6 Months to 1 Year

    Quick Thesis
    At curr...

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  • Logo whitebg 400

    Quick Pitch: Priceline.com (Nasdaq: PCLN) --Long

    Published: September 11, 2012

    <em>(The following is a condensed write-up from SumZero composed by one of the site's buyside professionals)</em>

    Source: Hedge Fund. New York, NY.

    Recommendation: Long

    I propose a long investment in priceline.com (Nasdaq: PCLN), with a price target of $739/share to be reached within 12-...

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    Quick Pitch: PetMed Express

    Published: September 11, 2012

    PetMed Express (Nasdaq: PETS)--Long
    Current Price: $11.69 Target Price: $15.00
    Source: Hedge Fund. New York, NY.

    Quick Pitch: Expectations are rather low (from sellside analysts as well as the buyside with 26% short interest). The company's small beats the last couple of quarters have sent t...

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  • Logo whitebg 400

    Featured Stock: Aeropostale (NYSE: ARO)

    Published: September 11, 2012

    ARO

    SumZero Analysts Following Aeropostale: 28
    SumZero Investment Reports on Aeropostale: 15

    <strong>SumZero Community Sentiment:</strong>
    <em> <strong> 82% Long</strong></em>, 12% Hold, 6% Short

    <strong>SumZero Consensus Price Target:</strong>
    Mean: $22.63 per share
    Median: $25.00 per shar...

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