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

The Asymmetric And Contrarian Opportunity In Kewaunee Scientific

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Key takeaways

    Kewaunee Scientific (NASDAQ:KEQU) trades at a distressed multiple as economic uncertainty surrounding state government spending results in a lack of near term visibility. However, many of the headwinds that limited growth over the past two years are gradually turning into tailwinds. Moreover, a focus on the lower top line misses the significant margin expansion and free cash flow growth driven by cost cutting, greater operational efficiencies and a return to a more sustainable capex run rate after the completion of a major facility ...
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