Invacare (IVC), mcap=$28m, price $0.74 vs $1.00

$IVC pitch:
– Healthcare products company specializing in essentials: wheelchairs, respiratory products, and care beds.
– One of three global competitors.
– Turnaround play with activists on board.
– Last year was very challenging with supply chain issues and inflation weighing on profitability.
– Management struggled to execute in the face of these headwinds.
– This underperformance has led to an activist joining the Board and the recent ouster of its CEO.
– Demand remains strong and the company has a high backlog.
– After the latest convertible exchanges and debt raises IVC has plenty of liquidity to execute.
– Potentially multi-bagger over the next two years.

$IVC valuation:
– Adjusted EBITDA potential of $70m with better execution and a normal operating environment.
– The European segment is worth substantially more than the current TEV.

Exp. gain: Multibagger over the next two years.

Full IVC write-up (free guest account required):

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