GNC - GNC: A Lot Of Potential Upside But No Conviction
Thesis
GNC Holdings, Inc. (GNC) appears to present material upside (+70%). However, with so many factors needing to come together, the risk of faulty analysis is high, and we'd rather not burn our figures trying to be smarter than we are. Therefore, our rating is neutral.
Introduction
When I first initiated coverage on GNC, I found it an interesting but straightforward case. No matter how I looked at it, the liquidity gap was too big and the lenders in charge weren't incentivized to help with the problem. The company was either going to