This CEO Needs 60% Upside – So I Decided to Take a Position
Personal Investment Thesis
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I found something special in the markets last week.
Three completely unrelated businesses bundled into one listed company.
The first processes £28.7 billion annually with 62 enterprise clients locked in at near-100% retention.
The second delivered £44.6 million in revenues last year with a 90% success rate and 300% average returns on investment.
The third runs a technology platform that could be worth millions to the right buyer - or nothing at all.
Combined market cap: roughly £115 million.
Net cash alone: £15 million.
£71 million of accumulated tax losses creating massive shields for any buyer.
The market can't figure out what this company is.
Financial services? Technology? Entertainment?
The answer is all three, and that's exactly why it's mispriced.
Management knows it.
They're buying back shares aggressively while the CEO needs the stock to hit £1.76 for his options to fully vest. Current price: £1.10.
In my view, the confusion has created what looks like an opportunity.
Three quality assets accidentally bundled together, each operating in completely different industries, each with different growth drivers, each worth more separately than the market values them together.
To me, this looks like a textbook sum-of-the-parts scenario, with pricing that doesn’t fully reflect the underlying assets.
Classic mispricing.
I currently hold about 10% of my portfolio in this stock.
Here's what I think the market is missing...