BSFFF - ARAR Fund - Basic-Fit: Nominally The Biggest Opportunity At This Moment

2024-06-12 10:30:00 ET

Summary

• Basic-Fit stock declined over 15% after earnings, possibly due to a major shareholder selling off shares.
• Negative news regarding slower expansion, lower pricing, and new competition in Spain impact Basic-Fit's future prospects.
• Despite poor performance, Basic-Fit remains a potential acquisition target and may see improved profitability in the future.

The following segment was excerpted from this fund letter.

Basic-Fit N.V. ( BSFFF )

Last two months saw the bulk of our portfolio having earnings. Most of these were uneventful, but some warrant some extra attention. The company that moved the most after earnings was Basic-Fit. In my view, there was nothing particularly interesting about the earnings themselves. There were even some pleasant surprises, with energy cost expectations even below my calculations. However, the stock declined by over 15% that day, even after it had already declined over 10% following a downgrade from Barclays....

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