A Special-Situation Guaranteed by Government
A unique situation with low downside risk and possibly 2x-4x upside potential.
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Today’s business is a fascinating set-up.
Mr Market is currently saying that this business is going to die within the next few weeks and is a value-trap destined for irrelevance.
The reality is a company that is asset-rich, solvent and strategically protected by a major G7 government and the EU, trading at 20% of its liquidation value.
In other words, this business has been deemed ‘too important to fail’ and a successful pivot will happen one way or another.
The play here is simple:
Buy the stock (at 20% of TBV) and hold it while the business completes its pivot, and double or maybe even quadruple our money in the next 1-3 years.
The price may swing around in the meantime, but as soon as things stabilise, the upside will more than make up for the volatility.
Let’s take a look….