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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