Some companies have a knack for snatching defeat from the jaws of victory. While the latest setback to Summer Infant (NASDAQ:SUMR)
- a management change brought on by an apparent attempt from prior
management to steal trade secrets and form a new company - is not the
fault of the business, it represents yet another weird setback in a
story that has seen plenty of challenges on its road back.
The
resume of Summer Infant's new CEO should bring some confidence, and the
company's basic plan of prioritizing new product development and margins
seems sound. What's more, and as bizarre as this may sound, I think
there's an argument that a new product good enough to steal probably has
some above-average potential. A higher risk premium moves my target
down a bit, but Summer Infant should arguably trade 50% higher than it
does today.
Continue here:
Summer Infant's Recovery Story Veers Into The Bizarre
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