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Why LogMeIn (LOGM) Stock Offers Limited Upside Post COVID-19 Crisis

Alex Smith

Bernzott Capital Advisors recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -32.76% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned -35.66% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Bernzott Capital Advisors highlighted a few stocks and LogMeIn Inc. (NASDAQ:LOGM) is one of them. LogMeIn provides essential cloud services to its customers for remote access and collaboration. Year-to-date, LOGM stock lost 0.8% and on May 12th it had a closing price of $85.11. Its market cap is of $4.15 billion. Here is what Bernzott Capital Advisors said:

"LogMeIn (LOGM): In December 2019, the company announced that it entered into an agreement to be acquired by affiliates of Francisco Partners and Evergreen Coast Capital for $86.05 per share in cash. The deal provided for a 45-day “go-shop” provision, which concluded without any additional offers surfacing. The transaction is expected to close in mid-2020. With limited upside in the stock, we sold."

In Q4 2019, the number of bullish hedge fund positions on LOGM stock decreased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with LOGM’s downside potential.

Disclosure: None. This article is originally published at Insider Monkey.