Green-Flagging One Small Cap with Big Growth Potential
Why one short-seller calls Turning Point the best long of his career.
▶ I never know where a good idea is going to come from...
I’ve gotten good short ideas from people who were rabidly long stocks, sold them and went short...
And from people who wanted to be long, but after doing their research, steered clear...
On the long side, it’s hard to resist ideas from people who committed enormous sums of their own dollars to the idea... and were willing to talk about them publicly.
That’s how I wound up with this green flag.
This idea came from a portfolio manager who runs a long/short hedge fund, with a passion for going after the sleaziest of the sleazy. So, when he mentioned a stock he was long, I thought it would be worth hearing him out.
When he said he thinks it’s the best long idea he’s had in his career, I got very interested.
Naming Names...
But it wasn’t until he said that he felt so strongly that he wouldn’t mind attaching his name to the idea that put me over, since this guy generally keeps a low profile.
George Baxter runs Texas-based SabrePoint Capital. If you search his name, you won't find much. I first ran into him a few years ago when I was researching another long idea. I contacted a well-connected Texas friend in my pursuit of somebody who knew this company and he led me to George, whose firm owned the stock.
As was the case then, the research on this company was exceedingly deep. As George laid out his thesis, I could sense the depth of his research and his enthusiasm, and I mentioned to him, “Too bad you’re not a quoted guy.”
To which he said, “I would be up to be quoted on this.”