2024-03-07 11:45:00 ET
Summary
- 2023 was the year our long-term holding, Shyft Group, faced cyclical headwind fears and realities.
- The company's production schedule for BlueArc faced a major setback as its battery supplier declared bankruptcy, later acquired by Volvo, postponing BlueArc's revenue generation to 2025.
- We believe that an R&D expense-depressed EBITDA is one reason the market is unduly punishing Shyft.
- We continue to believe that, in the long term, Shyft Group is a shiny diamond that has multiples of upside from here, to above its previous highs.
The following segment was excerpted from this fund letter.
The Shyft Group ( SHYF )
Much like our investment in HireQuest ( HQI ), 2023 was the year our long-term holding, Shyft Group, faced cyclical headwind fears and realities, declining over 50.0% in 2023 on top of a 50.0% drawdown in 2022. What a continuous gut punch from a company whose business model we've admired since our initial investment in 2017....
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For further details see:
Artko Capital - Shyft Group: A Shiny Diamond That Has Multiples Of Upside