Eric DeLamarter of Half Moon Capital presented his in-depth investment thesis on Tile Shop Holdings (US: TTSH) at Best Ideas 2021.

Thesis summary:

Tile Shop Holdings is a specialty retailer of floor and wall tiles that lost its institutional following and has been orphaned following a voluntary and unwarranted de-listing of its shares last year. This event led to forced selling for non-fundamental reasons, driving TTSH’s stock price from over $20 per share into the low single digits where it presently stands.

Meanwhile, Tile Shop is benefiting from increasing homebuilding activity and ongoing consumer spending on home renovation and improvement. Execution missteps that hampered the business are being resolved, and with the encouragement of two activist groups, TTSH is now in a position to relist its shares on a major exchange.

The stock trades at a 50+% discount to peers due to the above technical reasons. Eric believes there is a clear near-term course to 70-200% upside in the stock.

Listen to this session:

slide presentation audio recording

About the instructor:

Eric DeLamarter is the PM of Half Moon Capital— a research intensive, deep value-oriented, long/ short partnership which invests across various sectors and markets with a focus on small-mid cap companies and special situations. Prior to founding Half Moon, Eric was at Stelliam Investment Management, a value-oriented hedge fund in New York, an associate at Lineage Capital, LLC, a middle-market private equity fund and an investment banking analyst at RBC Capital Markets. Eric holds an MBA from The Heilbrunn Center for Graham & Dodd Investing at Columbia Business School, with a concentration in applied value investing and a BA from the University of Michigan.

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