Apr. 1 at 5:49 AM
$JELD at
$1.24 continues to be an extreme valuation anomaly, trading at a market cap of just
$107M against trailing revenues of over
$3.2B. The market is actively pricing in a terminal bankruptcy risk that the balance sheet simply doesn't support. The company's net property and equipment is booked at cost for
$728M, and even factoring in aggressive distress, a conservative liquidation of these hard assets clears the
$1.37B debt load and hands investors the global manufacturing operation effectively for free. With a massive 33.3% surge in short interest this month and an average analyst target sitting at
$3.35, the spring pressure is building. Any positive update regarding the finalized European Strategic Review during the upcoming May 4th earnings call could immediately force shorts to cover and slingshot equity toward the
$2.62 to
$3.50+ peer average and buyout floor. #ValueInvesting #JELD #DeepValue #ShortSqueeze
