Qurate Retail: Value Stock In Retail's Forgotten Corner

Summary

• Qurate Retail, Inc. offers a high-risk, high-reward opportunity, trading at a forward P/E ratio of 0.5x, with signs of revenue stabilization and positive cash flows.
• Despite past GAAP losses due to non-cash impairments, Qurate's core business remains profitable, generating positive adjusted net income and free cash flow.
• The company's debt is manageable, with leverage ratios stabilizing, and interest expenses covered by adjusted EBITDA and operating cash flow.
• The preferred shares, QRTEP, provide a 29% yield to maturity, trading at 40 cents on the dollar, with mandatory redemption in 2031, offering both income and capital appreciation.

Investment Thesis

This is a vulture-investing investment opportunity for high-risk, high-reward investors. Qurate Retail, Inc. ( NASDAQ: QRTEA ) is one of the top TV shopping providers, operating several channels (QVC, QVC2, HSN, HSN2) across the globe, in addition to digital streaming services found on the

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