Loyalist Group Limited (LOY)

[chambers]

Summary

Under-appreciated story with little following that’s yet to be fully understood by the market with excellent growth potential.
Large and extremely fragmented market filled with “Mom & Pop” operators with no exit strategy; M&A has historically been accretive; and there is no direct competition.
Meaningful organic growth: strong government support for the industry; market share gains as Loyalist’s relative strength, size and brand recognition increase; and new initiatives, such as student housing and franchising.
Targeting a 16.3% EBITDA margin and FCF of $0.05/share by 2016E with net cash on the balance sheet as Loyalist realizes the full impact of synergies from acquisitions.
Target price of $0.99, or ~133% upside. Understanding the implications of recent M&A, the seasonality of the industry, and upcoming catalysts is critical to timing this compelling trade opportunity.

http://seekingalpha.com/article/2562605-loyalist-group-ltd-globalism-language-and-value-investing-presents-an-under-appreciated-education-roll-up-story