Triple Play

George Nicholson’s concept of a “triple play” — a set of highly desirable conditions that can be somewhat rare, but he felt, uncommonly rewarding. The three conditions are: (1) Depressed stock price. Our interpretation of this is an elevated PAR. (2) Potential for P/E expansion. The current P/E is less than the projected P/E. (3) Potential for increased profitability or margin enhancment. The current net margin is less than the projected net margin.