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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details