SQBG

Sequential Brands Group, Inc.

Consumer


Presented:02/16/2018
Price:$1.73
Cap:$0.11B
Current Price:$0.00
Cap:$0.00B

Presented

Date02/16/2018
Price$1.73
Market Cap$0.11B
Ent Value$0.87B
P/E RatioN/A
Book Value$7.03
Div Yield0%
Shares O/S63.00M
Ave Daily Vol311,173
Short Int15.39%

Current

Price$0.00
Market Cap$0.00B
Sequential Brands Group, Inc. engages in promoting, marketing, and licensing portfolio of consumer brands. It provides fashion, home, athletic, and lifestyle categories, including Martha Stewart, Jessica Simpson, AND1, Avia, Joe's Jeans, Heelys, and GAIAM. It offers its products to various distribution channels, including to retailers, wholesalers, and distributors. The company was founded in 2015 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Iconix Brand Group Inc (ICON), Macy's (M), Sequential Brands Group Inc (SQBG)

Highlights

The presenter is long shares of Sequential Brands (SQBG) and believes the risk/ reward may be skewed to the upside with the stock trading at ~$1.70 ($796MM EV, $109MM market cap). The company is highly levered (>6 turns) and spends a substantial portion of its cash flow on interest payments (~$60MM - $65MM), but most of its brands are recognizable, including GAIAM, Jessica Simpson, and Martha Stewart; and there could be optionality around either new CEO Karen Murray’s ability to turn the business around, or a breakup of the business (on a sum-of-the-parts basis, the presenter sees $1.2B of total value).

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Idea Discussion

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