Originally Posted by
MAC
I’ve a HY14 DCF valuation on SML of $4.16.
Much of their recent growth has come from increasing margins, great, but I’ve longer term forward growth concerns about how much capacity is left in their one site without further capital requirements and possibly further dilution, even with the 40% additional capacity coming with the lactoferrin process.
Now the post IPO stag is starting to drop off, I’m cautiously starting to look for a long term entry under $3.00 on a value basis (30% discount to valuation).
The traders may take flight now, could provide an ok opportunity for investors looking to enter.
DISC: Watching for now