I have had my eye on this company for a while. It's been making PPE for 30+ years and is arguably one of the first to the industry. They've had a long road of trying to master their craft. Some recent transformations may have finally had them turning the corner after having a record quarter.
I am watching this closely for an epic breakout. I should forewarn something with this post though: this company has disappointed before as you can see. It's never broken out before. Will this time be different? Will the new CEO and CFO turn it around? Time will tell.
Good discussion here. I think that the base that the company can build off from here sets it apart from previous situations. The company has so far managed pretty effectively to secure raw materials, maintain and build client relationships, and expand production capacity.
What's coming for the remainder of this year into next year is a continued need for PPE, and a subsequent restocking worldwide which will keep demand buoyant - bearing in mind that the company doesn't only sell medical related equipment.
With no debt, a good cash pile, improved profitability, more demand and a seemingly more capable management team, I'm confident in the long term prospects here.
cgd
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@scheplick Slightly off topic of idea thesis, but what happened in H2 2014, some interesting price action there?
drewby4321
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It's tough to evaluate the earnings bump from new management vs the rush to PPE during covid. Do you see anything the numbers shows the new CxO's making a difference? I'm worried it trades too much along with pandemic positive/negative news.
scheplick
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@drewby4321, That's really the key here. This stock has been here before i.e. traded with pandemic news. There is one really big difference: new CEO, new CFO, and new production facilities in India and Vietnam. So the question remains: will they repeat what they've always done? If they can produce material, maintain their production standard (they pass all rigorous testing standards), and use cash wisely as they have 10%+ of market cap in cash and no debt, then yes they can break out. But that remains to be seen. Risk takers will be either rewarded in a very big way or get crushed bad again. So let's see..
drewby4321
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@scheplick, so many good ones now, I’ll keep watching this one from the sidelines. But thanks for the pointer.
What's coming for the remainder of this year into next year is a continued need for PPE, and a subsequent restocking worldwide which will keep demand buoyant - bearing in mind that the company doesn't only sell medical related equipment.
With no debt, a good cash pile, improved profitability, more demand and a seemingly more capable management team, I'm confident in the long term prospects here.