Dr. Hugh Akston
Hedge fund manager, long/short equity, value

Invacare Dramatically Undervalued Due To Temporary FDA Issue

Invacare Corp. (NYSE:IVC) declined substantially following its Q2 2014 earnings report despite the fact that revenue actually came in higher than analyst expectations. We believe Mr. Market is being incredibly short-sighted on IVC and we believe the stock offers a tremendous risk/reward opportunity for those investors with longer time horizons. The company is the global leader in mobility and seating products, but it has been dramatically under-earning for the past two years due to an FDA consent decree that has temporarily shut down production of its high-margin custom power wheelchair business. IVC has maintained the production infrastructure during this period, which has dramatically impaired the profitability of the consolidated business. Furthermore, IVC has been overspending on consultants and...

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