Weighing Machine
Long/short equity

Paragon Technologies: Two Activist-driven Turnarounds For The Price Of One

With major stock market indices near all-time highs, I continue to fish in smaller and smaller ponds in order to uncover deeply undervalued companies. With just a $5 million market cap, I believe Paragon Technologies (OTCPK:PGNT) to be a deeply undervalued company. Paragon offers investors the opportunity to own:

1) $1.90/share in net cash

2) A material handling solutions business which is in the late stages of an operational turnaround. The business had been losing money and recently turned profitable.

3) Exposure to a potential cyclical upturn in the material handling business. Current year revenues are 35% below what Paragon did during the last peak. In particular, Paragon has meaningful exposure to automakers which are seeing a resurgent...

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