Jeffrey Smith Introduces New Investment Ideas
Activist investor Jeffrey Smith, associated with Starboard Value, revealed three fresh investment opportunities at the 13D Monitor’s Active Passive Investor Summit in New York City on Tuesday.
Bill Holdings
The first company he spotlighted was Bill Holdings, which he believes is undervalued by about 50%. This software company assists small and medium enterprises in managing and processing their bills. Smith explained that Bill generates revenue through subscriptions, transactions, and float revenue. Recently, Starboard representatives joined Bill’s board of directors. Despite a slowdown in revenue post-pandemic, Smith anticipates a recovery. “Neither company has adequately improved profitability, but that will change,” he stated. “We think Bill still has considerable upside potential at its current valuation.”
TripAdvisor
Next up was TripAdvisor, in which Starboard holds a 9% stake. TripAdvisor operates several businesses including its well-known travel guide platform, Viator, which is a marketplace for experiences, and Fork, a restaurant market in Europe. Having begun his career in mergers and acquisitions at Société Générale, Smith suggested that TripAdvisor should contemplate selling Fork. “Fork leads in every country we operate in,” he noted, highlighting a sales increase of over 20% and improved profitability. “It’s a key strategic asset that we believe is sellable and non-core… TripAdvisor is surprisingly affordable for a growing, self-owned company,” he added.
Fluor
Smith’s final recommendation was Fluor, an engineering and construction firm he believes stands to gain from the rising global demand for electricity. “Fluor is a fantastic company,” Smith remarked, referencing the firm as a major player in engineering, procurement, and construction management. He noted it is poised to spearhead significant infrastructure projects. “Additionally, Fluor holds a 39% stake in NuScale Power, a prominent developer of small modular nuclear reactors,” he added. Despite a 26% increase in 2024, Fluor’s stock has dipped by about 3% this year. As global electricity needs surge and infrastructure investments rise, Smith believes Fluor will emerge as a significant beneficiary. “Fluor values engaging with its shareholders and welcomes diverse insights to help enhance long-term shareholder value,” a representative from the company stated, expressing eagerness for ongoing collaboration with Starboard.
On Monday, it was reported that Starboard had acquired a 5% stake in Fluor’s stock.
