On January 22, we distributed a B.I.G. Tips report to our paid subscribers called, “WWPED (What Would Private Equity Do?” In that report, we looked through the carnage in equity markets to find beaten down value names that could be attractive targets to the private equity world. We noted that while private equity firms can have widely divergent strategies, they often look for some key characteristics: under-performing companies and significant free cash flow potential. Using that as a guide, we sorted through the Russell 1,000 for companies that were then trading at 10x or less on a “TEV / (EBITDA – Capex)” basis, which is a good proxy for valuation relative to cash flow. We found 39 names that met our criteria and highlighted three in particular (URBN, GNC and GMRE) in that report.
Yesterday, we updated that screen and sent it to Bespoke Premium and Bespoke Institutional members. The updated report looks at the performance of our original WWPED list of stocks and identified some new stock ideas after updating the screen for current market pricing. To get the full report, please sign up for a paid membership below!
See the full B.I.G. Tips report by signing up for a monthly Bespoke Premium membership now. Click this link for a 10% discount ($89/month).