Nassarius Capital
Long/short equity

Art's Way: Micro-Cap With Divestiture Opportunity

Art's Way's (NASDAQ:ARTW) non-performing Pressurized Vessel segment has been a thorn in the side of shareholders since 2008. The previous five years has consistently been negative and 2013's Q1 was the worst operating loss in eight quarters. Divesting this asset could be a catalyst for significant gains allowing the core business to shine brighter and lead to further multiple expansion. Our price target of $9.88 suggests ARTW has potential upside of 33% upon divestiture.

Company Overview

Art's Way Manufacturing is a micro-cap conglomerate with three operating segments: Agricultural Products (core segment), Pressurized Vessels, and Modular Buildings. The company started out over fifty years ago selling grinder mixers to individual farmers that raised livestock. As the individual farmer dissipated,...

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