BGC Partners, Inc. (BGCP): Severe Undervaluation Plus A 7% Yield Equal 57% Upside

BGCP: Severe Undervaluation Plus A 7% Yield Equal 57% Upside by Nathanael A. Stewart, CFA - Opus Capital Management

Case Study: BGC Partners, Inc. (BGCP)

Before we get started on BGCP, we wanted to provide an update on our view of RMR Group Inc., a stock we wrote about in an article published at ValueWalk on January 6th, 2015. We purchased RMR Group Inc. for our Small Cap Value Plus Strategy (a dividend, growth, and quality focused strategy) in late December 2015, when it was trading at near a 4X EBITDA multiple and a 7% yield. Today, the Stock is trading at close to 10X our full-year 2016 EBITDA estimate, and the yield has fallen to less than...