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Rare Quality Micro-Cap: LSI Industries, Inc. (LYTS) Long Thesis

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Jacob Wolinsky
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Rubicon Capital Group's memo to investors for the month of June 2019, discussing if LSI Industries, Inc. (NASDAQ:LYTS) executes their turnaround plan successfully, the stock could see 75%+ upside.

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LSI Industries Inc.

Price:  $3.51

Mkt Cap: $91 MM

Ent Val: $121 MM

EV / EBITDA:  8.4x LTM, 6.7x fwd

TD/ EBITDA:  2.2x

Price / Tang. Book: 1.0x

Div. Yield:  5.7%

Price Target:  $6 + (trading), $10+ (transaction)

Situation Analysis

  • Rarely does one find a compelling turn around opportunity led by an institutional quality executive with aligned incentives to drive shareholder return in small cap land.
  • Founded in 1976, LSI Industries (“LSI”, “LYTS” or the “Company”) is a manufacturer of outdoor and indoor lighting...

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Jacob Wolinsky is the ex-Founder of Valuewalk.com (founded 2011, sold 2023). He is founder of HedgeFundAlpha (formerly ValueWalk Premium), a hedge fund focused intelligence service for institutional investors. Prior to founding Valuewalk, Jacob worked as an equity analyst covering small caps, a micro-cap analyst, doing member development a large hedge fund community and freelance financial writing. Jacob lives with his wife and five kids in Passaic NJ. - Email: jacob(at)hedgefundalpha.com. For confidential inquires email me for my Signal id. Other methods of secure communication are also available.FD: I almost exclusively avoid the purchase of equities to avoid conflict of interest and any insider information. I only purchase broad-based ETFs and mutual funds. I will disclsoe if I have a stake in any company, but in general avoid

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