September 2015 Issue of Ultimate Value Finder is Released

Investment Opportunity 1 – Activists Want Change

Investment Opportunity 1 is a company with a good business. Revenues are recurring and the expenses required to generate those revenues are small. However, you could not tell by looking at the financials. This is because the company is overspending and investing in non-core ventures. Such policies have attracted activist investors who are pushing for change. They want the company to maximize profitability. If they succeed, the stock price is likely to increase because the underlying value is higher than the price tag that the market has assigned to the company.

Investment Opportunity 2 – Keeps Paying Down the Debt

Investment Opportunity 2 is an over-indebted company with good assets. Recently, the management was fighting with activist shareholders who tried to force them to liquidate the entire company. The activists suggested that the company is worth more sold in pieces than operated as an independent company. Instead of selling, the company hired a new CEO with successful turnaround experience. The main component of his strategy is to aggressively pay down the debt. With three years of his budgeted debt repayment, the value of the common equity should double from the current levels.

Investment Opportunity 3 – Unique Company in a Hated Industry

Investment Opportunity 3 is a unique company. It has a superior business model in comparison to other companies in its industry. Its income stream is reliable because of long-term contracts with the majority of its clients. However, because the company is in an industry that is hated and out of favor, its stock price has been hammered. Some value investors are realizing this and acquiring shares on the cheap.

If you are a subscriber, you already received an email with the full September issue.