Quick Value #215 - Retail Merger + Turnaround

Transformational acquisition + industry bottoming = retail turnaround trading at 0.4x TBV / 3-4x EBITDA

Today’s post covers:

• Specialty retailer focused on “credit-constrained consumer”

• Historically profitable but 2 years of large losses being extrapolated by investors

• Recent acquisition/merger = catalyst + meaningful earnings improvement

• Super cheap shares at 0.4x TBV and 3-4x pro-forma EBITDA

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Market Performance

4.29.24 market performance