Complimentary Equity Research From Boyar on CHTR, BEN, STKL

We wanted to give readers a head's up that Boyar Research is currently offering complimentary equity reports on three stocks.  They consistently put out high quality research and this time around they look at one popular hedge fund name, and two other names you might be less familiar with.

Boyar sees 60% upside in each of these companies. You can read the full write-ups for free here and we've excerpted some of the reports below with permission:


Charter Communications (CHTR)

"We view Charter as a best-in-class operator in the midst of multiple transitions that should unlock faster growth in the coming years. Charter ramped up investment in the TWC and Bright House assets it acquired in 2016, which should result in lower capital intensity, lower churn, and incremental cost savings/margin expansion going forward. We estimate that video will account for < 20% of Charter’s consolidated revenues, net of programming costs, by 2019. Meanwhile, Charter holds a near-monopoly on high-speed Internet over much of its footprint, and its commercial business continues to grow at or near double-digit rates.

We project that Charter can grow Adjusted EBITDA from $15.3 billion in 2017 to $20 billion by 2022. Assuming no expansion in Charter’s forward EV/EBITDA multiple, we estimate that Charter’s intrinsic value could exceed $500/share by year-end 2021. Charter already retired 12% of its shares in 2017 and could have the capacity for ~$28 billion (a third of the current market cap) in additional repurchases over the next 4 years. Finally, we believe that Charter and indeed cable companies generally are in a better position than wireless operators to support the development of 5G, and Charter remains a likely seller over the long term."

You can read their full analysis of CHTR here.


Franklin Resources (BEN)

"Following a decline of more than 25% in its share price from recent 52-week highs, BEN now trades at just 1.2% of its AUM (adjusted for its large cash hoard of ~$8.5 billion of net cash/investments, or ~50% of its current market cap), representing a significant discount to industry precedent transactions, which have occurred at 2.7% of AUM, on average, over the past ~10 years.

Since the beginning of FY 2007, BEN has returned $15.1 billion to shareholders via repurchases and dividends/special dividends, representing 87% of its current market cap and an astonishing 178% of its current enterprise value. Returns to shareholders will likely continue to be robust thanks to the Company’s newfound liquidity, the result of the new U.S. tax law, which offers lower federal tax rates and more favorable repatriation features. In the wake of the passage of the new tax law, Franklin has paid a special dividend, increased its regular dividend by 15% to $0.92 a share (yield: 2.9%), and accelerated the pace of its share buybacks.

Based on our assumption that the Company’s AUM will increase at just a 2.5% annual rate over the next 2 years, and valuing BEN at a discounted 2.5% of AUM, we derive an intrinsic value for the Company of $55 a share, representing 74% upside from current levels. Should the value versus growth pendulum or the active versus passive pendulum shift in Franklin’s favor, our intrinsic value estimate will likely prove extremely conservative.

We believe that Franklin represents an attractive target for a financial services firm given its strong brands, favorable long-term investment track record, and strong global distribution. Moreover, the Johnson family’s ~40% stake, coupled with BEN’s strong balance sheet, could help facilitate a management buyout." 

Click here for the rest of their complimentary BEN research.


SunOpta (STKL)

"SunOpta is in the early stages of a multi-year turnaround that is expected to drive growth, increase profitability, and unlock shareholder value. The Company’s turnaround is being overseen by a new chairman and CEO, both of whom have a proven track record of unlocking shareholder value in the consumer products industry. Notably, SunOpta’s chairman recently presided over the value creation at AdvancePierre Foods for Oaktree Capital (a 23-bagger for that firm).

The Company operates in the attractive market for organic and non-GMO ingredients and consumer products, which is growing at a high single-digit/low teens (%) rate. The increasingly important millennial generation is expected to be a key factor sustaining future industry growth, as millennial parents are the largest purchasers of organic products in the U.S.

The prospect for increased private label penetration bodes well for SunOpta, which has a low-cost advantage over its peers thanks to its integrated sourcing and manufacturing business model.

In late 2016, SunOpta received an $85 million investment from Oaktree Capital, which has continued to increase its stake in the Company, acquiring nearly $60 million in STKL shares via open market purchases during 2017 at an average price of $7.36 a share.

Applying a discounted multiple, relative to precedent transactions, to our 2020E EBITDA, we derive an intrinsic value of $12 a share, representing 65% upside from current levels. Management is heavily incentivized to unlock shareholder value, as the CEO holds ~750k of performance-based stock options/units that vest at various increments/stock prices between $11 and $18 a share."


Read the free report on STKL here.

Boyar's Latest Issue Profiling 3 Stocks That Have Declined ~23% On Avg

We wanted to bring your attention to a limited-time offer from our friends at Boyar Research. Normally their equity research reports, which many of the world’s most successful institutional investors have been subscribing to for over 40 years, are sold exclusively on a subscription basis. These subscriptions cost tens of thousands of dollars. However, for a very limited amount of time, Boyar is making its most recent issue available for purchase for just $945. This issue features three companies including AMC Entertainment Holdings, The TJX Companies, and Harley-Davidson that they believe to be selling at significant discounts to their estimate of intrinsic value.

Act quickly as this offer expires on September 18th at Noon EST.

To take advantage of this limited time offer, please click here.


Investment highlights of companies featured in Boyar's latest issue:

1)  AMC Entertainment Holdings, Inc.  (current price $15.20, Boyar’s 2019 estimate of intrinsic value is $26 per share)

AMC has declined ~60% from its 52-week high due to both weak attendance trends as well as fears that controlling shareholder Wanda could be forced to sell its stake. However, the upcoming film slate looks promising, which could cause a quick rebound in industry sentiment. Even assuming revenue growth slows from 8% (2014-2016 average) to 4% by 2020 and attendance fails to recover to 2016 levels, Boyar estimates AMC’s intrinsic value could exceed $26/share by YE2019 using conservative multiples.


2)  The TJX Companies, Inc. (current price $73.47, Boyar’s 2021 estimate of intrinsic value is $120 per share)

In Boyar’s view, TJX is a classic case of throwing the “baby out with the bathwater” as shares have declined ~10% from their 52-week high in sympathy with the carnage experienced by traditional brick and mortar retailers (as well as margin pressures Boyar believes to be temporary). However TJX has significant growth opportunities and unlike most retailers possesses a “moat” that protects it from online competition.


3) Harley-Davidson, Inc. (current price ~$47.96, Boyar’s 2019 estimate of intrinsic value is $62 per share)

HOG has declined ~25% from its 52-week high due to a multitude of factors, including a reduction in shipping guidance as well as fears associated with the greying of its traditional customer base. However the company possesses an iconic brand, sells at a below market multiple, and sports an ~11% FCF yield. Boyar believes HOG has a significant opportunity for capital appreciation if some of its marketing initiatives are properly executed.


This offer expires on September 18th at Noon EST, click here to purchase.

For additional information on Boyar Research or this offer, please email jboyar@boyarvaluegroup.com

2 Non-Consensus Stock Reports From Boyar Research

Boyar Research recently profiled two companies that are currently very much out of favor in the investment community. Western Union (WU) is the second most shorted stock in the S&P 500 and Discovery Communications (DISCK) has 28 analysts covering it with only 3 buy ratings.

To receive Boyar’s complimentary full-length report on both of these companies, please click here.

For over forty years, Boyar Research has been providing profitable non-consensus stock picks to their subscribers. They have demonstrated time and again that they are not afraid of challenging popular opinion or providing their clients with a profitable contrarian perspective, from profiling financial companies in 1987, when they sold at a significant discount to the rest of the market; to advocating purchasing drug company shares in 1993 after the S&P drug group lost nearly 40% of its value due to fears over “Hillarycare”; to being bullish on U.S. housing-related stocks in 2011."


To receive their complimentary full-length reports on both Western Union and Discovery Communications, please click here.


So what attracts Boyar to Western Union, which has 14% of its shares sold short?

-  WU’s rapidly growing digital money transfer business, WU.com, could single-handedly lift the Company’s EPS growth to 10%-13% by 2020, from flattish today. WU.com is a hidden asset within WU. Using conservative assumptions, they estimate that WU.com will account for 27% of Western Union’s enterprise value in 2020, up from 11% in 2016.

-  Recent precedent transactions—namely, PayPal’s takeover of Xoom, the #2 digital money transfer provider, and the bidding war for MoneyGram, the #2 global retail C2C money transfer provider—highlight WU as substantially undervalued. Moreover, WU is the #1 player in both of these businesses.

-  Applying a 3.5x revenue multiple to WU.com, which is a discount to Xoom’s 4.8x revenue takeover multiple, and 15x EV/FCF to WU’s remaining businesses (retail C2C, C2B, and B2B), which is a substantial discount to MoneyGram’s 21x EV/FCF takeover valuation, they derive an intrinsic value estimate of ~$33 per share for WU at the end of 2020, offering ~72% upside, or a 3.5-year IRR of ~20% including the dividend (3.7% current yield).

To receive Boyar’s Western Union report, please click here.



Why does Boyar Research like Discovery Communications despite the consensus view that traditional cable companies are secularly challenged?

-  Following a number of key affiliate fee renewals in both U.S. and international markets, DISCK has significant revenue and cash flow visibility. Notably, international affiliate fee revenues are expected to increase at a low-double-digit percentage rate over the next few years.

-  A host of potential growth opportunities should favorably impact Discovery’s future results, including increased consumer adoption of Discovery GO (streaming content); further traction with various subscription-based initiatives, including the Eurosport Player; and increased pay-TV penetration in key international markets.

-  Since 2010, DISCK has deployed $8 billion toward buybacks (~50% of its current market cap)—reducing diluted shares outstanding by over 30%—including $1.4 billion utilized in 2016 to repurchase ~53 million shares at an average cost of ~$26 a share. They expect share repurchases to be a recurring theme as a result of the Company’s strong revenue and cash flow visibility, coupled with DISCK’s currently depressed share price and attractive valuation.

-  Applying discounted multiples (relative to precedent industry transactions) of 10.0x and 9.0x our 2019E EBITDA for the U.S. and International Networks segments, respectively, they derive an estimate of intrinsic value of $47 a share, representing over 80% upside from current levels. They also believe Discovery represents an attractive acquisition target.


To receive Boyar's Discovery Communications report, please click here.

Boyar Research Reports on Hanesbrands, Legg Mason, and Liberty Global

Barron’s recently ran a bullish story on Hanesbrands where they argued the stock could advance by 25%. The piece references extensively a recent report published by Boyar Research. Boyar was kind enough to provide our readers with this report as well as additional reports on Legg Mason and Liberty Global.

To receive these free reports, please visit:
http://boyarresearch.com/MF-Apr-2017

Boyar Research takes a private equity approach to public market investing by identifying securities trading at a substantial discount to their estimate of intrinsic or private market value. Since 2009, the average return for each company profiled in their flagship publication Asset Analysis Focus has been 83.7%, compared with an average return of 53.3% for the S&P 500.*

Hanesbrands Inc. (HBI)

- Hanesbrands, the world’s largest basic apparel company, boasts a portfolio of first-rate brands that hold the #1 or #2 market share position in underwear, intimate apparel, hosiery, and active wear in 12 countries.

- Several issues have weighed on HBI shares over the past two years, culminating in a sharp sell-off in the stock after the Company reported poor 4Q 2016 results. HBI’s innerwear segment, which comprises 43% of sales and nearly 60% of operating profit, exhibited surprising weakness during that quarter due to soft retail traffic not being fully offset by their rapidly growing online sales. However, we do not believe that this recent weakness represents a secular shift in the purchasing frequency of HBI’s products. Rather, we believe this is a temporary situation caused by a shift of customer purchasing behavior from brick-and-mortar establishments to online distribution channels.

- To see Boyar’s estimate of intrinsic value for HBI and to receive their complimentary full report, please click here


Legg Mason, Inc. (LM)

- Legg Mason, Inc. is a formidable player within the asset management industry, possessing impressive scale (~$710 billion of AUM) and a diverse line of well-established products catering to a full range of investment styles and asset classes.

- Approximately 70% of LM’s strategies are outperforming benchmarks from one-year and three-year perspectives, and the figure for the five-year and ten-year perspectives exceeds 80%.

- The Company has also reduced its shares outstanding by 40% and has raised its dividend seven times since 2010. However, LM shares have failed to achieve significant outperformance despite the Company’s strategic advances. In large part, this likely reflects the difficult fundamentals currently impacting the actively managed fund sector.

- LM is trading at approximately 0.7% of AUM, a substantial discount from how comparable firms have historically been valued in transactions.

- To see Boyar’s estimate of intrinsic value for LM and to receive their full report, please click here


Liberty Global plc (LBTYA / LBTYK)

- Liberty Global is the largest European cable systems operator.

- Liberty Global is underpenetrated in its existing network and has plans to expand its footprint by 6-7 million homes in the coming years.

- Liberty Global shares have de-rated to ~9x EV/OCF, below their longer-term average of ~10x—offering a bargain, in our view, for a high-margin, recession-resistant business best positioned to capitalize on the secular growth in internet data usage.

- To see Boyar’s estimate of intrinsic value for LBTYK and to receive their full report, please click here

20% Off Boyar's Forgotten Forty Report: Special Offer for Market Folly Readers

Each year, Boyar Research publishes their Forgotten Forty report which features the 40 stocks they believe have the greatest potential for capital appreciation in the year ahead, with an emphasis on near-term catalysts.

Their 2017 report will be released soon and Boyar has kindly given Market Folly readers a special 20% discount if you purchase by December 12th.

Each stock profiled in their report features a one page write-up summarizing the investment thesis, valuation, and what the potential catalyst is.

Boyar is also giving our readers a complimentary copy of their Guide to Profiting From Uncertainty.  This 100+ page report features in-depth research on 4 additional stocks.

Free Copy of Last Year's Report

To see what you can expect from the Forgotten Forty report, we've received permission from Boyar to post last year's edition for free which you can download here. 

And then you can save 20% off this year's Forgotten Forty report here.

Performance of Stocks in the Forgotten Forty Report

As you can see below, the Forgotten Forty has significantly outperformed the major indices on a 3, 5, 10, and 15 year basis.  Also, last year's report has outperformed the S&P by 400 bps and eight of the stocks profiled returned north of 31% each.

Special Discount Expires in 11 Days

This special 20% discount for our readers expires December 12th, so take advantage before it's too late.  Thanks again to Boyar for their generosity.

To receive your 20% discount, please click here.

Welling on Wall Street Interview With Boyar Value Group

Welling on Wall Street recently interviewed Boyar Value Group's Mark Boyar and Jonathan Boyar and talked about various topics including: their investment strategy, some of their current favorite stock ideas, and behavioral finance.

On investing, Mark Boyar noted that, "Patience is probably one of the most important elements of stock market investing.  First, you have to find the great business at a good price, then you have to have patience, the fortitude and the ability to withstand gyrations in the stock market.  That element is critically important."

They also share their thoughts on stocks such as Madison Square Garden (MSG), QVC (QVCA), Discovery Communications (DISCA/K) and more.

Check out the full interview embedded below:



You can download a .pdf copy here.

Complimentary Copy of Boyar Research's "Forgotten Forty" Stock Picks

Each year, Boyar Research publishes their Forgotten Forty Report featuring the forty stocks in their universe that they believe have the greatest potential for capital appreciation in the year ahead due to a catalyst they see on the horizon. 

Their 2017 report will be released towards the end of December, but in the meantime Boyar has been kind enough to provide our readers with last year’s report (which still contains many actionable ideas) for free.  You can get your free report here.

Some of the names featured include PayPal, Bank of America, Interval Leisure Group, Liberty Broadband, The Madison Square Garden Company, Harley-Davidson, MRC Global, Scotts Miracle-Gro, Sotheby’s plus 31 others.


Click here to download the free report 


Every stock profiled in The Forgotten Forty has a one page write-up highlighting Boyar's investment thesis (including the company’s valuation and potential catalysts for value realization). While the Forgotten Forty contains one page reports on each stock, readers should be comforted to know that Boyar Research has previously published a full-blown research report on every company featured.

The Forgotten Forty has significantly outperformed the major indices on a 3, 5, 10 and 15 year basis.*

*Past performance is no guarantee of future results.  These results are not audited.


To download Boyar's Forgotten Forty, please click here

Complimentary Equity Reports From Boyar Research

Boyar Research has generously offered to give Market Folly readers complimentary in-depth equity research on three stocks they feel have multi-bagger potential.

You can receive your free reports by clicking here.

Since 2009, over 25% of the companies featured in Boyar Research's Asset Analysis Focus have achieved multi-bagger status within 3 years of publication.  Over the same period, the average stock Boyar profiled increased 73% compared to the S&P 500's 45% gain.*

Average 3 Year Performance of Companies Profiled by Boyar Research

Some of Boyar Research's multi-baggers include:

Find out what companies Boyar Research believes could be next by requesting complimentary reports on three companies, exclusively for Market Folly readers.  Click here to receive the reports.


Since 1975 Boyar Research has been providing independent research utilizing a business person's approach to stock market investing.  They take a company's financial statement and tear it apart, and then reconstruct it in accordance with economic reality - as opposed to generally accepted accounting principles.  Their various publications provide in-depth reports on companies they believe to be selling below their estimate of intrinsic or private market value.


To learn more about Boyar Research visit www.boyarresearch.com


Past performance is no guarantee of future results.  These results are unaudited.  The results represent the 3 year performance from the date of publication and takes into account spinouts and special dividends but not regular dividends.  These are the results of companies profiled in all issues of Asset Analysis Focus excluding The Forgotten Forty.