John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Viskase Companies Is An Undervalued Stealth Emerging Markets Play

Viskase Companies (OTCPK:VKSC) trades at a significant discount to its peer group despite its high market share, strong secular growth prospects and the support of one of the most successful investors in history. Past operational and tax issues that currently place an unwarranted ceiling on the valuation should recede given recent improvements.

Company overview

VKSC.PK produces cellulosic, fibrous and plastic casings for the processed meat and poultry industry and operates eight manufacturing facilities and ten distribution centers throughout North America, Europe, South America and Asia.

Investment thesis

VKSC.PK is still undervalued despite doubling in the past year as growing top and bottom line growth reduces the valuation multiple. This trend should continue given the strong secular growth outlook...

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