We recently published a list of 7 Stocks Billion Dollar Hedge Fund Voss Capital Is Crazy About. In this article, we are going to take a look at where International Money Express (NASDAQ:IMXI) stands against other stocks that Voss Capital is crazy about.
A fund management company, Voss Capital is based in Houston and was founded in 2011 by Travis Cocke who currently serves as the fund’s General Partner and Chief Investment Officer. He manages Voss’ funds. Interestingly, Voss is an acronym which stands for Value-Oriented Special Situations.
Before launching Voss, Cocke served as a Generalist Research Analyst at Ascendant Advisors LLC. from August 2009 to July 2010. Cocke was also an intern at the Teacher Retirement System of Texas during the summer of 2008.
He obtained a Bachelor of Business Administration in Finance from Texas A&M in 2009.
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In addition to concentrating on value stocks and special situations, as implied by the words that make up Voss’ acronym, the fund manager focuses on fundamentals. Special situations are unusual developments that affect companies. Additionally, Voss seeks to invest in stocks that it believes can double within three years.
Our Methodology
The following data is gathered from Voss Capital’s investment letter for the first quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). That’s why you should pay close attention to this important indicator.
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International Money Express (NASDAQ:IMXI)
Value of Voss Capital’s 13F Position (6/30/2024): $25.5 million
International Money Express (NASDAQ:IMXI) focuses on enabling consumers to send funds from the U.S. to Latin America.
In Q3, International Money Express (NASDAQ:IMXI)’s revenue fell 0.3% versus the same period a year earlier to $172 million, but its net income increased 17% year-over-year to $17.3 million.
Stating that its valuation was failing to reflect its true value, International Money Express (NASDAQ:IMXI) announced that it had hired an advisor to help it “assess strategic initiatives.” The shares currently have a forward price-earnings ratio of just 8.65 times.
Analysts, on average, expect its EPS to climb to $2.40 in 2025 from $2.17 in 2024
Voss believes that International Money Express (NASDAQ:IMXI) indicated that it would buy back $20 million to $25 million of its shares per quarter. The fund manager believes that these buybacks will enable the firm to “compound EPS at 20%+ for the next few years.”
International Money Express (NASDAQ:IMXI)’s share price is little changed since May 24.
Overall, IMXI ranks 6th on our list of stocks billion dollar hedge fund Voss Capital is crazy about. While we acknowledge the potential of IMXI, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IMXI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
