LUNA - Luna: An Update On This Great Story That Turned Into A Potential Death Spiral

2024-05-08 07:05:56 ET

Summary

• Luna Innovations seemed to be a potential multibagger with a lot of potential in the long term.
• However, revelations that started to come out 2 months ago have destroyed faith in the company, with shares down -67%.
• In this article, we discuss what happened at Luna, and we highlight the most important news that has come out since the 12th of March 2024.
• We hope this article provides context and an explanation of what is happening and what investors can expect from Luna moving forward.
• The company is now quoting at 1x its book value and might attract potential suitors.

Introduction

A few months ago, Luna Innovations ( LUNA ) started to look like a potential multibagger, thanks to great technology and an experienced management team. Today, however, the company is plagued by accounting problems, an internal investigation and a management team in shambles. Now, the company is potentially looking to sell itself (as the company is doing a "strategic review"), as it might not want to continue to rebuild the company from the current crisis. How much could investors expect from a potential suitor? In this article, we explore what went wrong and what we can expect moving forward....

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