In today’s briefing:
- Supermax Corp (SUCB MK): Quickly Mending the Damage; Soft Demand Outlook Remains the Main Overhang
- ASRT: Rolling Up with Buy Initiation
Supermax Corp (SUCB MK): Quickly Mending the Damage; Soft Demand Outlook Remains the Main Overhang
- Supermax Corp (SUCB MK) is facing import ban from the U.S. and Canada. Recently, Norway wealth fund has put the investment in the company under observation for two years.
- Since 2019, Supermax is being alleged for the poor living and working conditions experienced by its employees. Recently the company has aligned itself to the ILO standard.
- However, COVID-driven demand of glove is cooling off. Even upon this, excess capacity is bringing down the average selling price, thereby making the earnings outlook uncertain for glove manufacturers.
ASRT: Rolling Up with Buy Initiation
- ASRT is classic roll-up story where it is leveraging cash flow from one drug to create a portfolio of multiple drugs
- ASRT has managed to stay under investor radars through acquisitions of drugs with small revenue streams. The revenue is starting to add up
- ASRT can use its digital marketing approach to grow earnings and free cash flow from each of the drugs it acquires
Before it’s here, it’s on Smartkarma
