5 Best Stocks Under $30 According to Ravee Mehta’s Nishkama Capital

3. Houghton Mifflin Harcourt Company (NASDAQ:HMHC)

Nishkama Capital’s Stake Value: $14.9 million

Percentage of Nishkama Capital’s 13F Portfolio: 3.40%

Stock Price as of October 27: $13.59

Number of Hedge Fund Investors: 21

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) is a leading Boston-based book publisher of assessments, instructional technology materials, fiction and non-fiction books, textbooks, and reference work. The corporation is considered a leader worldwide in the provision of K-12 education content. The company has been breathed a new life following the disposal of the highly leveraged Media division to News Corp. This has increased the focus on the education business in the form of proceeds from the disposal, which has aided the company in restructuring its existing debt.

Investment management firm Laughing Water Capital LP shared its stance on Houghton Mifflin Harcourt Company (NASDAQ: HMHC) in its Q2 2021 investor letter. Here’s what the fund said:

“HMHC is the leading provider of instructional materials to students in grades K-12 in the U.S. At the end of this letter you will find a longer writeup, but in brief I believe the combination of a newly cleaned up balance sheet, slimmed down operating structure, a Covid induced acceleration of digital learning, and billions of dollars in federal stimulus set to flood the education world has put HMHC in position to gush cash over the next few years… but the market has failed to appreciate these changes. Given the pending onslaught of federal stimulus dollars I think it will be very difficult to lose money in  this investment, and if the company reinvests this cash wisely and the market recognizes how this business has evolved, there is a path to multi-bagger returns looking out a few years.”