3.3x FCF, 67% of TBV with insider buying
A deep-value stock with over 160% upside potential from its current price.
I’ve just added a new stock to my portfolio, here are some quick stats:
TBV Ratio = 0.67
EV/FCF Ratio = 1.5
P/FCF Ratio = 3.3
Avg SH Yield (at the current price) = 19.69%
I also estimate that there is roughly 160% upside in this stock before it reaches fair value.
I’m going to explain why I have been waiting for almost two years before buying this stock and why I believe now is the optimal time to get in.
The business has been FCF positive for 5 of the past 6 years and holds 57% of its market cap in net-cash.
Insiders collectively own 26% of the company and top shareholders and company directors have recently been buying the stock while it is depressed.
There’s a catalyst on the horizon and this year could see it unfold.
In fact, I have a strong feeling it could occur quite soon because of some recent developments…