INVE - Identiv: Strategic Review Outcome Disappoints - Sell
2024-04-03 14:37:15 ET
Summary
- Shares of struggling security solutions provider Identiv, Inc. cratered after terms of eagerly awaited strategic transaction disappointed market participants.
- The company is essentially selling its more stable high-margin business lines and pumping the proceeds into the remaining low-margin RFID operations.
- With sales proceeds being earmarked for acquisitions, debt repayment and covering anticipated cash losses, there won't be any sort of shareholder capital returns.
- Considering Identiv's dismal track record, current challenges in the remaining RFID business as well as the company's vastly increased risk profile going forward, investors should consider selling their shares and moving on.
On Wednesday, security technology provider Identiv, Inc. or "Identiv" ( INVE ) added another chapter to its multi-decade story of underperforming investor expectations....
Identiv: Strategic Review Outcome Disappoints - Sell