172% upside for this hidden serial acquirer

A great opportunity

Charlie Munger has a saying.

Turnarounds seldom turn.

And research by Michael Mauboussin proves this. Only 12% of companies go from a low ROIC to a high ROIC. But when they do, they provide an average return of 33% over all companies.

In my view, turnarounds always need to be structural. There has to be something significant that has happened.

It might be a division divested, some kind of major refinancing that unlocks future potential. Something more than just “new management comes in and explains its turnaround strategy”.

For this reason, we only look for structural turnarounds.

And in the past, we already wrote several times about this company, which I believe has a bright future in front of it.

Don’t forget what I mentioned:

• Last quarter, this company increased its guidance

• In 2024, it had a takeover bid at $5 per share. The company today is in a better position, and trades below $2.5 per share

• The refinancing in 2025 unlocks more firepower to reinvest and find new venues for growth

Lastly, if you screen our serial acquirer database, it shows some interesting metrics that validate the case.

Yes, I think there is signifcant upside, up to a double or triple from the current share price. I would not be surprised if in the future, another takeover offer would be announced.

Let’s dive deeper ⬇️