Shawn Kravetz of Esplanade Capital presented his in-depth investment thesis on Bridgepoint Education (NYSE: BPI) at Best Ideas 2018.
Bridgepoint is priced for distress but poised for success thanks to a dramatically improved regulatory environment for its postsecondary education offerings and a fortress balance sheet that has enabled it to survive the regulatory scrutiny and eroding fundamentals of the Obama years. While most peers have seen their stocks soar 50%+ since the election, BPI has languished as they turn around their business – with some self-inflicted headwinds now easing – and continue to buy back shares aggressively. They have remained profitable and cash flow positive, yet trade at less than 2.5x Shawn’s pro forma 2018 EPS and less than 1.5x EV/EBITDA. With overhangs removed and catalysts in play, BPI presents 90+% upside potential with undemanding assumptions about 2018 operations.
About the instructor:
Shawn Kravetz is President and Chief Investment Officer of Esplanade Capital LLC, an investment management company he founded in 1999. Esplanade Capital LLC manages capital for a small number of like-minded families, private investors, and institutions. Esplanade’s value orientation, driven by patient capital and proprietary research/analysis, has generated substantial outperformance versus benchmarks since inception. The firm specializes in smaller companies, out of favor & below the radar companies, special situations, and turnarounds. Prior to founding Esplanade, Shawn was a corporate executive and strategic advisor, including: Principal at The Parthenon Group, a leading strategy consulting boutique, where he advised chief executives on corporate strategy; Director of Strategic Planning and Corporate Development at The CML Group (NYSE traded), where he oversaw activities at subsidiaries including NordicTrack, The Nature Company, and Smith & Hawken; Consultant with Monitor Company, a leading strategy consulting firm. Shawn received an MBA with High Distinction from Harvard Business School in 1995, where he was awarded: The Thomas M. and Edna E. Wolfe Award; The Henry Ford II Scholar Award; and a Baker Scholarship. Shawn received an A.B. in Economics from Harvard University, magna cum laude, in 1991. Shawn has also been active in his community, having served as: Steering Committee Vice Chairman of The Museum of Fine Arts Council at The Museum of Fine Arts Boston; Member of the Steering Committee of The Vilna Center for Jewish Heritage; and Treasurer of the PTO for the Frances Jacobsen Early Education Center. Shawn currently serves on the Finance Committee at Temple Israel, Boston. Shawn currently serves on the board of directors of Nevada Gold & Casinos, Inc. where he is Chairman of the Corporate Governance and Nominating Committee and a member of the Compensation Committee. As an investor, advisor, board member, and executive, Shawn has a demonstrated record of creating value for his investors, clients, and companies.
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