KAR Auction Services (KAR)

Spinoff of the auction services for the salvage may reveal a good business, which is priced cheaply within KAR, compared to the competitor Copart.

Xpel Technologies (XPLT)

Xpel appears to be growing fast and would appear inexpensive if the growth continues.

HC2 Holdings (HCHC)

HC2 Holdings is a conglomerate of businesses run by Philip Falcone and appears undervalued.

Synalloy Corporation (SYNL)

Following industry consolidation, we expect improved pricing environment in the metals segment of Synalloy Corporation.  This is a classic late-cycle business as demand comes after capex budgets come, the businesses  should do well next couple of year and it  appears attractively priced

3PEA International (TPNL)

Situation

3PEA International in the prepaid debit card market and has grown rapidly in the recent quarters. Insiders own half of the company and Dan Henry, ex CEO of Netspend, recently became chairman of the board. Dan Henry sold  Netspend a prepaid card business for $1.4 bill to TSYS.

MSG Networks (MSGN)

MSG Networks appears cheap at ~8x EV/EBITDA versus past transaction at ~11-12x and ~12% FCF yield.

Spirit MTA REIT (SMTA)

Situation

Spirit MTA REIT was spun off from Spirit Capital (SRC) on June-1 and trades around ~$10 per share. Sell-side analysts had forecast that the share price would be around ~$10. Some market participants think it is very cheap.

Full House Resorts (FLL)

Situation

After a long spell of mismanagement, Full House Resorts was taken over by Activists in 2014. They installed a management team led by Dan Lee who is regarded as a very good manager. Mario Gabelli mentioned FLL as his best micro cap idea in Dec 2016 on CNBC.

Wyndham Worldwide Corp (WYN)

Situation

Wyndham Worldwide is spinning off its hotel management business separating its Vacation ownership and exchange business by Q2 2018. This can reduce some of the conglomerate discount in WYN.

Spirit Realty Capital, Inc. (SRC)

Situation

Spirit Realty Capital, Inc. announced plan for a Leveraged Spin-Off in Aug-2017. Spirit intends to spin-off substantially all of its properties leased to Shopko and its assets that collateralize Master Trust 2014 (part of Spirit’s asset-backed securitization program, “Master Trust A”) into a separate, publicly traded REIT.