5 Stocks To Invest In According To Jamie Zimmerman’s Litespeed Capital

1. Houghton Mifflin Harcourt Company (NASDAQ:HMHC)

Litespeed Capital Management’s Stake Value: $22.2 million

Percentage of Litespeed Capital Management’s 13F Portfolio: 24.57%

Number of Hedge Fund Holders: 28

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) is an educational services provider which offers products such as digital and physical textbooks, assessment services, book publishing rights, and online courseware.

As its fiscal Q4 came to an end, Houghton Mifflin Harcourt Company (NASDAQ:HMHC) had raked in $417 million in revenue and $0.72 in GAAP EPS, beating analyst estimates for both. The company’s price target was raised to $20 from $19 by BMO Capital in January 2022, who highlighted that stimulus funding and the growing shift to remote learning will benefit the company.

Houghton Mifflin Harcourt Company (NASDAQ:HMHC)’s largest shareholder is Arnaud Ajdler’s Engine Capital which owns 3 million shares worth $40 million.

In its Q2 2021 investor letter, Laughing Water Capital LP mentioned Houghton Mifflin Harcourt Company (NASDAQ:HMHC). It stated that:

“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.”

Disclosure: None. You can also take a peek at the 10 Best Biotech Stocks to Buy According to Mark Lampert and 10 Best Biotech Stocks Under $5.

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