Mesa Labs: Investor Capitulation Has Created A Buying Opportunity
- 40% decline year-to-date provides an opportunity to buy this high return-on-tangible-capital business at a very good price.
- 20% decline month-to-date suggests extreme capitulation selling that will rebound quickly.
- Recent acquisitions took advantage of super-low interest rates and will boost earnings growth substantially over time.
- Acquisition-related amortization of intangibles and one-time acquisition expenses are hiding the company’s true economic earnings power.
- 50% appreciation potential over the next year.