LVS Advisory LLC on Vistance Networks
Thesis
LVS bought Vistance Networks after a 2025 asset sale to Amphenol created a path to eliminate debt, pay a $10 per share special dividend, and leave behind operating businesses that still generated meaningful free cash flow. After the subsequent Ruckus sale, LVS estimated that Vistance held about $8 per share of cash and that the remaining business would generate about $0.90 per share of free cash flow. At a stock price of $12.13, the manager viewed investors as paying a little over $4 per share for that remaining free cash flow stream, or roughly 4.4 times free cash flow. LVS estimated the remaining business could be worth $6 to $8 per share, implying total stock value of $14 to $18, with a possible sale of the remaining business providing an additional catalyst.
“We believe the remaining business could be worth $6 to $8 per share, which implies that the stock should be worth $14 to $18 per share vs. $12.13 today.”
Key risks
- The remaining business may not be sold as expected