Cliff Note #117 Elevator Pitch - Value Trap Re-Rate

Debt reduction, large insider buy and favorable capital allocation strategies mark possible inflection point

The new stock added to the index is a life sciences company. We are not huge fans of the company, yet, but it’s moved significantly up our research pipeline. High debt and past management mis-executions (logistics and manufacturing issues) during COVID-19 have us approaching the company with some timidness.

However, after a few years of difficulty marked by operational setbacks, losses, and declining sales… management now claims it’s at an inflection point in the turnaround process. We are curious if management’s shareholder-oriented actions and a return to profitability could be catalysts for this value trap to re-rate higher.

They are definitely pounding the table that the turnaround inflection point has arrived.

Multibagger Themes: Debt Reduction- Favorable Allocation Strategy - Inflecting To Profitability