Summary
- Lifecore has a new CEO, who has turned around three previous CDMOs, as well as a new CFO who was the CFO for another CDMO that was acquired.
- Lifecore now operates at less than 35% utilization, meaning that it can almost triple revenue with virtually no additional capital required.
- Margins should improve as volumes increase/capacity is utilized, but, even without growth, there is opportunity on the cost side.
The following segment was excerpted from this fund letter.
After the third quarter ended, we participated in another PIPE of a company we already owned, Lifecore Biomedical, Inc. (NASDAQ:LFCR). In this case, we invested not to help
Single stock ideas excerpted from fund letters published by Seeking Alpha.
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