SFLY

Shutterfly Inc

TMT, Consumer, Event Driven/Special Sit


Presented:05/02/2019
Price:$45.64
Cap:$1.56B
Current Price:no data
Cap:no data

Presented

Date05/02/2019
Price$45.64
Market Cap$1.56B
Ent Value$2.03B
P/E RatioN/A
Book Value$17.51
Div Yield0%
Shares O/S34.17M
Ave Daily Vol787,916
Short Int14.95%

Current

Priceno data
Market Capno data
Shutterfly, Inc. engages in the provision of retailer and manufacturing platform of personalized products and communications. It operates through the following business segments: Shutterfly Consumer, Lifetouch, and Shutterfly Business Solutions (SBS). The Shutterfly Consumer segment covers sales from the company's brands and are derived from the sale of photo based products, such as photo books, stationery and greeting cards, other photo-based merchandise, photo prints and the related shipping revenues, as well as rental revenue from BorrowLenses brand. The Lifetouch segment includes professional photography services for schools, preschools and retail studios operated by Lifetouch under the JCPenney Portrait brand as well as Churches and other groups. The SBS segment delivers digital printing services that enable efficient and effective customer engagement through personalized communications. The company was founded by Dan Baum in December 1999 and is headquartered in Redwood City, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), Apollo Global Management LLC (APO), Morgan Stanley (MS), Shutterfly Inc (SFLY)

Highlights

Shutterfly (SFLY) stock has been extraordinarily volatile over the past two years, rising to ~$96 in June 2018 (up from $40 in late 2017), & collapsing to $35 over the remainder of the year. The presenter is long at $45 and believes the story will end on a positive note for investors, despite the disappointing holiday season, questions surrounding Lifetouch and the leadership team. With Morgan Stanley engaged, an “empty” CEO seat, and Okumus Fund Management recently filing a 13D, it is the presenter’s opinion that there’s a high probability of a takeout (on 4/24/19, it was reported that Cerberus and Apollo Group could be preparing bids for SFLY). Based on SFLY's $1.56B market cap ($2.4B TEV), he estimates a fair premium could be in the 25% - 30% range.

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Idea Discussion

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