JRjr33 Inc (JRJRQ)

[Baildon]

Article Conclusion

The CVSL story is just beginning. And it is happening quickly.

Given the rapid transformation and the likelihood of a number of transactions in 2014, I hesitate to model out what this business might look like twelve months from now. Having said that, bestowing a terrific and proven capital allocator / manager with a $500 million "war chest" bodes well for equity holders.

In my view, CVSL shares will likely remain volatile as investors digest the growth story and all the moving parts. That said, at the current $220 million valuation, CVSL certainly doesn't look overvalued given CVSL's operating businesses delivered an estimated ~$140 million sales run rate by the end of 2013, pricing the business at ~1.5x sales.

While the Blyth deal appears to be dead after CVSL announced it liquidated its Blyth shares, I wouldn't be surprised if CVSL revisits the opportunity given the right circumstances. That said, CVSL appears to have a healthy deal pipeline from which to curate a hand selected set of subsidiaries.

2014 promises to be an eventful year for CVSL and its shareholders. Investors get a glimpse under the hood when CVSL reports full-year earnings next month.