Published: March 20, 2020
As the COVID19 virus continues to disrupt the market, contributing to the historical plunge that briefly halted trading on Monday, March 9th and again on Thursday, March 12th, some portfolio and fund managers are looking to the skies for deep value investments in air travel. While others steer cl...
Published: February 13, 2017
It is pretty rare to drive somewhere and not spot at least one of Amerco’s (NASDAQ:UHAL) U-Haul trucks on the road. Stephen Saroki, an experienced analyst who is launching a long/short equity fund Anaxi Capital, believes the company’s competitive advantage coupled with its lack of coverage on the...
Published: December 06, 2016
Aerojet Rocketdyne Holdings (AJRD:US) is a little-known company heavily involved in the rocket industry. Eric DeLamarter, portfolio manager at Half Moon Capital, believes AJRD is a hidden gem offering large upside with relatively little risk. Poor investor relations have scared the public awa...
Published: October 16, 2015
Mobileye is a small piece of a much larger puzzle which doesn’t support long term monopolistic margins predicted by the sell side. Especially if you know the automotive industry, it’s easy to be highly suspicious of sell-side assumptions that assume a market that is a few million units today is g...
Published: June 18, 2015
SumZero’s Factset Best Short contest just happened to coincide with Carl Icahn announcing his 8% stake and activist intentions for Hertz. I’d been researching Hertz and using the short off and on since late 2013, depending on the price and recent developments. Icahn’s disclosure shot the stock in...
Published: August 29, 2014
As shareholders of almost 3% of USA Truck, Inc. we are very concerned about USA Truck’s current direction. We acknowledge USA Truck has seen appreciation in its shares from late 2012 when USA Truck commenced a search for a new CEO and restructured its Board. That being said, we believe most of th...
Published: May 29, 2014
While Fiat, as all other global automakers, operates in abysmal Europe, Fiat-Chrysler is actually less exposed to Europe (as a percent of company revenue) than is Ford. And while Fiat is headquartered in Italy, where the government appears increasingly likely to default in the absence of debt mon...
Published: February 18, 2014
We believe shares of Hawaiian Holdings Inc. (“HA” or “Hawaiian”) are grossly undervalued. While heavy growth spend has resulted in GAAP financials that have understated/obscured its economic potential, it is now at an inflection point, with margins set to rise and free cash flow to turn positive....
Published: August 01, 2013
Investors are forgetting that Kia is a fantastic company that has grown share consistently all over the world since its founding by making stylish and high quality vehicles. I don't expect issues with its Union to be substantial this year given the major union victory in and huge cost of last yea...
Published: May 16, 2013
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 improving industry dynamics. There's leverage to falling crude ...
Published: April 29, 2013
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 the impact of Hertz's recent merger with Dollar Thrifty on c...
Published: April 18, 2013
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 for natural gas alternatives.
Published: March 15, 2013
Post restructuring, GM is a radically improved business with earnings growth potential and excess cash for buybacks. As the reality of “New GM” becomes apparent, the stock could double.
Published: November 01, 2012
Since earlier this year, Westport has secured strong growth and new opportunities in all areas of its business; however, heightened uncertainty in the economy and delayed availability of liquefied natural gas (LNG) infrastructure has OEM customers sharply reducing inventory and end customers dela...
Published: October 22, 2012
GM has been at a competitive disadvantage over the last several years given the company’s stale product portfolio among its most profitable platform, full-size trucks. The redesigned full-size trucks, the K2XX platform, could cause production volumes to grow by ~10% in 2013.
Published: October 04, 2012
I believe jetBlue (JBLU) offers the potential to access the upside benefits of industry consolidation without many of the disadvantages of the mainline carriers, with the added benefit of offering a greatly simplified analytical challenge with fewer moving parts to consider. JBLU profitably oper...
Published: September 19, 2012
As predicted, Judge Stefan Puhle did a service to equity markets by throwing out the ridiculous short-selling lawsuits. Shares of Porsche have re-rated to 46 EUR still trading at a massive discount to 76 EUR tangible book comprised simply of 150mm VOW GR shares worth 20.2B EUR today, and 3B in ne...
Published: September 18, 2012
Westport Innovation’s current valuation has diverged significantly from its intrinsic valuation based on both current and forward business fundamentals and metrics. With the market ascribing tremendous value to the Heavy Duty segment as if the growth in this segment and associated revenue capture...
Published: September 10, 2012
I submit this write-up knowing full well that the SumZero community quickly frowns upon unprofitable young businesses with seemingly expensive valuations. I am doing so because I believe that Zipcar (ZIP) is one of the cheapest stocks available and offers a 2x-3x return opportunity.
Published: July 26, 2012
Student Transportation (Nasdaq: STB) is using the guise of helping bus children to school to operate a financing scheme by raising money from Peter to pay Paul. This scheme is highly dependent on paying an illusory fixed monthly dividend to existing investors by issuing stock and bonds to new inv...
Published: July 05, 2012
There has been an abundance of takeover speculation as the stock price has cratered. Fiat chairman Sergio Marchionne indicated Fiat’s interest in entering the US truck markets and did not rule out making a play for NAV. Meanwhile, the Financial Times Deutschland reported on June 10, 2012 that Vol...
Published: July 02, 2012
Following the sale of Porsche AG, PAH3 turns into a highly levered, easily modeled, perpetual call option on Volkswagen which I view as being attractively priced at only 3.08x trailing PE, 2.7% dividend yield and with the enlarged company being the strongest automobile manufacturer in the world c...
Published: May 03, 2012
With Avis (NYSE: CAR) shares trading at just under 6x 2012 EBITDA, a discount to historic forward multiples of 6-8x, current levels have historically been an attractive entry point for CAR shares. The shares are also trading at just under 7x 2012 P/E. It should be noted that few buyers and seller...
Published: May 03, 2012
Analyst consensus opinion is that Tesla will achieve near-flawless Model S production, meet or exceed sales targets in 2012 and 2013, and pave the way for the introduction of new models like the X and Gen 3 sedan. The company faces significant challenges in order to execute this strategy successf...
Published: September 11, 2012
Spirit Airlines (Nasdaq: SAVE)<strong>
</strong>Recommended Action:<strong> LONG
</strong>Current Price: $18.22 Target Price: $30.00
Source: Hedge Fund. Minneapolis, MN.
Quick Pitch: Spirit Airlines (Nasdaq: SAVE) is an ultra low cost airline with the lowest costs and best margins in the U....