At Monash Investors, we are constantly scouring the market looking for misunderstood and mispriced stocks that offer substantial upside; that is, stocks that we consider to have at least 60% upside or 30% downside to our price target. From our direct experience of investing over a combined 50+ years, we have identified recurring situations which allow us to uncover such stocks. For example, the equity market often has an inability to price significant change, driven by diverse causes such as industry cycles, product roll outs or even customer behaviour.