Blucora is a company with three main business segments: TaxAct, Monoprice, and Infospace. Aquitania Capital Management’s analysis suggests that the market’s focus on short-term issues with Infospace has caused the stock price to be undervalued, overlooking the growth and profitability of TaxAct. TaxAct provides online tax preparation services and has been experiencing solid revenue growth. Monoprice is an online retailer that offers consumer electronics and accessories at competitive prices. While not as successful as TaxAct, it still has potential. Infospace, on the other hand, has faced challenges, such as the non-renewal of a mobile search contract with Google and technical issues during software changes. However, the overall sum of parts valuation for Blucora is considered attractive, taking into account the earnings multiples, cash flows, net cash, and net operating losses.
It’s important to note that this analysis and valuation are based on Aquitania Capital Management’s assessment and may not represent the views of all investors or financial advisors. Investing in any stock involves risks, and it is always advisable to conduct thorough research or consult with a financial advisor before making investment decisions.
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