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Six Flags Entertainment Corporation (NYSE:SIX) has been beaten up since its highs back in March of this year. This can be attributed to the general market downturn and fear of impending recession. Six Flags did not fare well in the last recession, going bankrupt, which might be why Six Flags is trading at a discount to peers. Six Flags’ current valuation is 11.54 times LTM free cash flow or FCF or 9.5 times normalized FCF. This represents a distressed value, which I believe is the market getting ahead of itself. Six Flags has a number of positive things going for it, including years of profitability, attendance numbers that have yet to recover to pre-coronavirus highs, and a new CEO with a great plan for the future.

Sutl Enterprise is a marina operator that derives most of their revenue from their ONE°15 Marina Sentosa Cove, Singapore which they own and operate. They also manage various marina’s and are in the works to manage an construct others with an emphasis in Asia. Sutl Enterprise is a great play on the rise of the super wealthy specifically in Asia as they will need a place to park their yacht. The company is at a very attractive valuation with more cash than market cap and trading at less than 10 times normalized earnings.

I originally wrote an article on Good Times Restaurants (NASDAQ:GTIM) back in June 2021. Things were going well until the Q2 2022 report. Beef, labor and delivery are all eating away at GTIM’s margins as we experience an inflationary bout. The Q2 2022 restaurant level margins declined by 6% YOY from 18% to 12%. These problems are not unique to GTIM and they sum up the Macro environment for the restaurant industry as a whole.

AF Legal is a law firm rolling up the family law market in Australia. Family law is a branch of law focused on divorce, separation, property and children matters. AF Legal is growing fast since listing revenue and ebitda CAGR are 50% and 125% with less than 2% market share in the family law market in Australia. AF Legal is able to acquire other family law firms at very attractive multiples of 1.5-3.5 times EBITDA or 3-7 times FCF. AF Legal also has great return on capital metrics clocking in over 20% ROIC as of H1 2022. The market opportunity is large for AF Legal and so AF Legal should be able to keep growing at this fast clip, acquiring companies at cheap multiples, and having great returns on capital. 

Onex (OTCPK:ONEXF) is an asset manager focused on the fast growing private equity and debt markets located in Canada. Onex has a large portion of capital invested in its own private equity funds which has produced great returns and is being undervalued by the market. Onex’s asset management business is still in its infancy and Onex is projecting high growth over the next 5 years which should begin to create fee-related earnings for Onex. Execution for Onex will reap large rewards for shareholders at these levels.