I have a small position mostly out of FOMO because Chris Krug, among a few others, keep saying what a great opportunity this is (as in a potential 100 bagger). I've looked at the business and this one is outside of my expertise. It's hard for me to wrap my head around the long term prospects. It's not as clean of a business as I typically like, but that's probably where the opportunity lies.
The recent run up has given me some pause. Maybe this one is worth looking into more though.
Fair enough, It's hard to ignore when lots of smart investors are in on the stock. The story is simple although the industry is quite complex so I understand your perspective. Regulation risk can always loom but based on trends in reducing medical waste, PFMT is well positioned.
On the business side of it, the financials aren't clean at all, but zooming out, the pitch if fat enough at this valuation that it shouldn't matter. Even with the recent run-up, it still has value. I try to pay as little attention to stock history when doing fundamental analysis, but it does still creep up time and time again.
Thanks for reading and commenting, I really appreciate it!
The share dilution is 10.5M, which is pretty close to the 10M estimation you made in the post. The additional capital to pay off the debt will help significantly clean up the balance sheet which in turn should make the company more appealing to investors.
I have a small position mostly out of FOMO because Chris Krug, among a few others, keep saying what a great opportunity this is (as in a potential 100 bagger). I've looked at the business and this one is outside of my expertise. It's hard for me to wrap my head around the long term prospects. It's not as clean of a business as I typically like, but that's probably where the opportunity lies.
The recent run up has given me some pause. Maybe this one is worth looking into more though.
Fair enough, It's hard to ignore when lots of smart investors are in on the stock. The story is simple although the industry is quite complex so I understand your perspective. Regulation risk can always loom but based on trends in reducing medical waste, PFMT is well positioned.
On the business side of it, the financials aren't clean at all, but zooming out, the pitch if fat enough at this valuation that it shouldn't matter. Even with the recent run-up, it still has value. I try to pay as little attention to stock history when doing fundamental analysis, but it does still creep up time and time again.
Thanks for reading and commenting, I really appreciate it!
Of course as soon as I top up my position they go and dilute the shares
The share dilution is 10.5M, which is pretty close to the 10M estimation you made in the post. The additional capital to pay off the debt will help significantly clean up the balance sheet which in turn should make the company more appealing to investors.
Ultimately I think the bull case is still strong.