Monday, November 19, 2018

Multi-Color Takes A Big Step Back On Weaker Volumes

The situation at Multi-Color (LABL) continues to erode, but in a frustrating “death by a thousand cuts” sort of way. The Constantia deal is still far from proving to be a worthwhile use of shareholder capital, and in the meantime there are valid questions emerging about management’s plan as well as their grasp of the current situation. Although I still own some shares here, and I still see a path where the shares could be worth meaningfully more down the road, it’s tough to ignore the repeated disappointments and the clearly weaker near-term growth prospects. The shares do look meaningfully undervalued, even after another cut to expectations, but investors need to realize that this under-followed company is now deep in the doghouse and probably needs at least a year to dig itself out of the hole it made for itself.

Read the full article here:
Multi-Color Takes A Big Step Back On Weaker Volumes

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