Lifecore Biomedical (LFCR) Does Not Face Bankruptcy Risk Now
Laughing Water Capital, an investment management company, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, investment in the fund returned 13.8%, net of all fees and expenses, compared to the SP500TR and the R2000 returns of 8.7% and 5.2%, respectively. The fund’s return so far in 2023 was 22.4% compared to benchmarks’ 16.9% and 8.1% returns, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Laughing Water Capital highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the second quarter 2023 investor letter. Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization headquartered in Chaska, Minnesota. On July 28, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $10.55 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 8.15%, and its shares gained 1.20% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $319.748 million.
Laughing Water Capital made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its second quarter 2023 investor letter:
"Lifecore Biomedical, Inc. (NASDAQ:LFCR) – Lifecore, formerly Landec, is our fill-finish CDMO that specializes in highly viscous drugs, and prefilled syringes and vials. My last letter was devoted almost entirely to this one company, as the market was concerned about a potential bankruptcy at the time. Since then, the company has refinanced its debt, which has taken bankruptcy risk off the table. Shares have rallied more than 4x since the lows, but in my opinion, they remain severely mispriced and represent extraordinary skew. The company is presently running a sale process, and I believe the strategic value of the company’s assets could lead to a buyout at a price 40-200% higher in 1-3 months. The position is sized commensurately: the outcome here is going to matter quite a bit to us. You will find a full length writeup with my latest thoughts on LFCR as a separate attachment to this email."
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Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of first quarter which was 15 in the previous quarter.
We discussed Lifecore Biomedical, Inc. (NASDAQ:LFCR) in another article and shared Cove Street Capital's views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
