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

Insignia Systems Is Cash Rich And Trades At A Distressed Valuation

Key takeaways

  • Insignia Systems (NASDAQ:ISIG) trades at a sub-5 EBITDA multiple due to its nanocap size, virtual lack of coverage and the fact that the market has been slow to respond to the recently successful turnaround.
  • However the large net cash balance provides downside protection while investments over the past three years are beginning to drive significant top and bottom line growth.

Company overview

ISIG develops and markets in-store media products, programs and services to retailers and consumer goods manufacturers. Its Point-Of-Purchase Services (POPS) provide at-shelf advertising and media products in more than 22,000 retailers nationwide with major customers including General Mills, Kellogg, Hormel and Nestlé.

ISIG helps brands stand out and compete against a rising generic threat...

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