BXC - BlueLinx Holdings: Huge Upside As Merger Benefits Become Clear
Summary
BlueLinx Holdings Inc. (BXC) ("BlueLinx," "BXC," or the "Company") provides an extraordinary opportunity for investors who are willing to do a bit of digging. The Company has just completed a transformational merger (with Cedar Creek), which materially increases its earnings power and drastically improves its competitive position. Today, you are buying the business at a 20%+ fully-taxed forward cash yield to equity. Although the business looks highly levered at first pass, leverage should drop quickly through a combination of debt paydown from operating cash flows, sale of redundant facilities, and potential sale-leaseback transactions. Current