Lifecore Biomedical Inc.
Thesis
Lifecore is poised for significant growth as it expands its manufacturing capacity in a market that is short on fill/finish CDMO capacity. With revenues, profits, and customer pipeline at record highs, the company is expected to fill its new capacity with high-margin production, leading to rapid profit growth and a substantial increase in share price. Lifecore currently trades at $6 per share, but could reach $20-30 per share as new customers are onboarded and commercial production ramps up.
Did it work?
The thesis anticipated significant growth for Lifecore, projecting a share price increase to $20-30 as manufacturing capacity expanded. However, the stock has declined by 26% since the pitch, indicating that the expected growth and customer onboarding have not materialized as anticipated, leading to a failure of the thesis.
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