Investment Thesis
Having taken a deep dive look at Exelisis, I believe the negative share price reaction to the company's latest set of results, which out-performed expectations, was unwarranted. Overall, I believe the stock is undervalued. In this article I will address the concerns surrounding the company's ability to grow revenues and the bottom line, and try to explain why they may be slightly overstated.
I am not saying Exelisis is not a risky investment; I believe the main risks are the lack of alternative revenue generating options to "blockbuster" drug Cabometyx, expiring patents for