JGWPT Holdings Shares Volatile But Largely Unch Following Report from Kerrisdale Capital
Kerrisdale Capital, a private investment management firm, has published its investment thesis explaining why it owns shares of JGWPT Holdings Inc. (NYSE: JGW), the nation's leading purchaser of structured settlements and the owner of the J.G. Wentworth and Peachtree brands. Kerrisdale believes that shares of JGW offer new investors more than 75% upside given continued organic growth, accretive acquisition opportunities, and a forward valuation multiple of just 7x earnings.
The full report can be found here: http://kerr.co/jgw
JGW has 60-70% market share and unrivaled brand recognition in the structured settlement sector. JGW's towering scale and access to the securitization markets provide it with a lower cost of capital, and more competitive pricing, than any of its current competitors. To further bolster its growth, JGW is exploring the acquisition of several smaller competitors, an approach Kerrisdale believes can drive superior returns on capital.
Kerrisdale believes that a reasonable fair value for JGW, without attributed upside for M&A and adjacent market opportunities, is materially higher than the current stock price.
"While new to the public markets, J.G. Wentworth and Peachtree are brand names with national significance and a long-term track record of success. Poor initial trading and a confusing accounting structure have led many to neglect this well-managed highly profitable business," said Sahm Adrangi, Chief Investment Officer of Kerrisdale Capital.
Kerrisdale currently holds long positions in JGW.
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