Jul. 8 at 12:39 PM
$CODI Honestly, I’m starting to feel like I might be evaluating this situation a bit too optimistically on my own.
Let’s try to look at the worst-case scenario.
Even in a severe downside, would the total damage to the company really exceed
$50 million?
Now that Morty Feder’s misconduct has been formally identified, he can’t really escape responsibility for the losses — and reportedly, he has around
$120 million in the bank. If CODI can just finish restating their financials before November, like management claims is on schedule, then today’s price might be something we look back on as a memory.
After all, the market already wiped off
$1 billion in market cap over this issue. No matter how I look at it, I don’t think this is a company that should be trading at a
$450 million valuation, even under worst-case assumptions.
My main concern — honestly — is whether management is competent enough to get the financial restatement done by November. That’s the biggest risk I see.
What do you think?
