IART- I may double my position at $17
This is one of the best chances at a 3-4 bagger than anything I've seen in years. Has anyone looked at the one year chart ? This stock was $45 only a six months ago ! It was $75 back in 2021. I have never seen a company get slaughtered this bad, unless earnings were to be almost wiped out for years, or bankruptcy is around the corner. At the height of their success in 2021, eps was $3, and has now come down to $2.47 being guided for 2024, with 2025 being guided slightly better, with 2026 likely to $3.50 or higher. Yet the stock has been decimated as if eps was down 80%, not the 17% drop it's actually seen. So why has the stock been hit this bad ?
Investors feel that the quality control issues, which caused their Boston Factory to close 2 years ago, and the persistent negative quarterly results over one issue or another, must mean that something ominous is lurking. They don't trust the company, and feel that eps will keep getting revised down until the company either goes bankrupt from not being able to resolve the quality control issues, or becomes a company in trouble for years to come. However the CFO just spoke for the company in two September Webcasts, saying that the quality control revamp was going smoothly thus far, and still on track to be fully resolved within a year or so in 2025. She said there are no balance sheet concerns, and that revenues and earnings in 2025 should be slightly better than in 2024, with 2026 hopefully a full turnaround, with the 2 tissue devices that were made at the Boston Factory to be made at another location in MA, and to be on the market in early 2026.
With all this, the stock is at mutli year lows, and down 80% from 3 years ago. As I said, this is basically from investors perpetually selling in fear that the company won't overcome the quality control issues for many years, and very possibly go bankrupt in the process. I firmly disagree with that view, and feel the CFO has a very good handle on the problems and what it will take to resolve them by mid to late 2025. I believe IART is a rare chance for a triple or more from the present $17 by mid 2025.
AI
