Utah Medical Products, Inc. (NASDAQ: UTMD) - Part 2
The investment model: LBO or Active Value
This post is a follow-up to my initial investment memo on Utah Medical Products, Inc (ticker: UTMD). You can view by clicking here.
The way I see it, there are three ways to generate a superior risk-adjusted return:
LBO - take majority control through a buyout (attractive given the large discount and practically zero debt on the company’s balance sheet)
Active Value - Buy it low on its cheap market price to fundamentals, however you will need to be active in creating a catalyst to close the Price/Value gap as the board and management are idle.
The third option is to buy in at the current discount and wait for another investor to come with a plan for one of the two previous options
