Tieton Capital Management

4700 Tieton Drive, Suite C
Yakima, WA  98908
(509) 965-6488

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April 18, 2019

April 22, 2019 By Lora Leavenworth

Purchased Myriad Genetics (MYGN): 

  • Leading provider of genetic testing
  • Successfully owned company in the past (sold last year)
  • Stock price declined nearly 40% from peak, after sale
  • Anticipate widespread reimbursement for novel depression test
  • Possible doubling of existing breast cancer testing market
  • Growth and expanded market potential of recently acquired prenatal genetic testing company
  • Potential for first-ever melanoma test approval
  • Near-term and multi-year developments could propel earnings more than four times higher than this year’s results

Added to Trecora Resources (TREC): 

  • Specialty petrochemical and wax producer
  • Completed a multi-year capital expansion program
  • Anticipating management changes will lead to more profitable utilization of their assets
  • Free cash flow generation should be significant with completion of plant expansion
  • Monetization of non-core copper and zinc mine could generate large cash windfall
  • Trading near book value
  • Added to portfolio in anticipation of factors above culminating in revaluation of company

Sold Electro Scientific (ESIO): 

  • Supplier of laser-based micro-machining primarily for printed circuit boards & semiconductors
  • Approximately two weeks after portfolio purchase in fourth quarter company announced sale to MKS Instruments for $30 cash per share – nearly double our purchase price
  • Sold half position shortly after announcement
  • Sold remainder of position this year

Sold First Internet Bancorp (INBK): 

  • Internet based Midwest commercial bank
  • Successfully growing loan portfolio
  • However, flattening yield curve squeezing margins
  • Upside relative to alternatives decreased due to less robust earning assumptions
  • Sold to generate cash for opportunities with greater upside

Trimmed Barrett Business Services (BBSI): 

  • Outsourced human resources provider and consultant for small and medium sized businesses
  • Management executing business plan
  • Stock price rose following strong Q4 results and 2019 guidance
  • Consequently, forecasted upside decreased to less than portfolio average
  • Proceeds used to repurchase Myriad Genetics with substantially more expected upside

Trimmed Helix Energy (HLX): 

  • Provide specialized well intervention vessels for offshore oil & gas industry
  • Management executing business plan
  • Our research identified three important contracts ending in two years
  • Concerned contract renewals will be at lower prices than current contracts
  • Trimmed to mitigate future risk

Trimmed Steelcase, Inc. (SCS): 

  • Leading office furniture designer and manufacturer
  • Catalysts tied to new products, European sales team improvement and European cost reductions working
  • Stock price moved up as catalysts executed
  • Higher stock price led to lower upside relative to overall portfolio
  • Position trimmed to create cash for companies with higher anticipated upside

Filed Under: Portfolio Change Updates

Archieve

  • December 21,2020
  • February 27, 2020
  • April 18, 2019
  • December 4, 2018
  • September 14, 2018
  • June 14, 2018
  • January 22, 2018
  • November 15, 2017
  • September 7, 2017
  • June 28, 2017
  • April 26, 2017
  • January 23, 2017
  • October 20, 2016
  • July 28, 2016
  • June 2, 2016
  • March 9, 2016
  • December 21, 2015
  • June 12, 2015
  • October 14, 2015
  • February 18, 2015
  • December 2, 2014
  • September 3, 2014
  • June 10, 2014
  • December 18, 2013
  • August 1, 2013
  • March 21, 2013
  • December 27, 2012
  • August 23, 2012
  • August 23, 2012
  • July 3, 2012
  • July 3, 2012
  • April 20, 2012
  • April 20, 2012
  • March 5, 2012
  • March 5, 2012
  • September 23, 2011
  • September 23, 2011
  • July 14, 2011
  • July 14, 2011
  • April 19, 2011
  • April 19, 2011
  • January 24, 2011
  • January 24, 2011
  • October 28, 2010
  • October 28, 2010
  • September 29, 2010
  • September 29, 2010
  • August 13, 2010
  • August 13, 2010
  • February 5, 2010
  • February 5, 2010
  • August 13, 2009
  • June 11, 2009
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  • April 23, 2009
  • April 23, 2009
  • December 15, 2008
  • December 15, 2008
  • November 26, 2008
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  • July 15, 2008
  • July 15, 2008
  • April 25, 2008
  • February 5, 2008
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  • December 14, 2007
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  • September 17, 2007
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  • August 24, 2007
  • August 24, 2007
  • June 19, 2007
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  • March 27, 2007
  • March 27, 2007
  • January 9, 2007
  • October 23, 2006
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  • August 21, 2006
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  • June 7, 2006
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  • April 21, 2006
  • April 21, 2006
  • April 14, 2006
  • February 16, 2006
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