Charles Hoeveler presented his in-depth investment thesis on CommerceHub (Nasdaq: CHUBA) at Wide-Moat Investing Summit 2017.
CommerceHub is a cloud-based software application that enables dropship e-commerce for the world’s largest retailers. CHUBA spun out of Liberty Interactive in the summer of 2016 with little fanfare despite a high-teens organic revenue growth profile and 40-50% EBITDA margins. CommerceHub’s economic castle is protected by a strong network effect, long-standing positive customer relationships with the world’s most sophisticated retailers, and a compelling value proposition for both retail and supplier customers. Chuba trades at ~21.5x/18.0x Charles’ 2018/19 free cash flow per share estimates. This for a business that Charles forecasts will compound free cash flow per share 20-30% annually for the foreseeable future.
Norwood Capital Partners, LP is a concentrated, fundamental value-based long/short investment fund. Norwood relies on primary research to build a portfolio of dominant businesses trading at a discount to intrinsic value. Norwood is managed by Charles Hoeveler, with 15 years of experience in institutional asset management.
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