CompoSecure: Navigating The Crypto Crosscurrents

Nov. 28, 2022 10:41 PM ETCompoSecure, Inc. (CMPO) StockAXP, JPM, CMPO1 Comment

Summary

  • Shares of metal payment card provider CompoSecure, Inc. (CMPO) are down approximately 45% since its public debut in December 2021 despite besting its road show projections.
  • In addition to a terrible stock market environment, the hindered ramp of its digital assets platform due to a turbulent cryptocurrency market is to blame.
  • With its metal card business trading at just over FY23E earnings and one times FY23E revenue, the recent beneficial owner buying into this busted IPO merited a deeper dive.
  • A full investment analysis follows in the paragraphs below.
  • Looking for a portfolio of ideas like this one? Members of The Busted IPO Forum get exclusive access to our subscriber-only portfolios. Learn More »

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CMPO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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