Mycronic

Worth looking into?

Are the shorts loosing their grip on Mycronic? Mycronic is one of the most shorted stocks on the swedish market. When Shorts have been right for a while, but have to close their positions as something positive happens that will cause a change in sentiment, big swings might occur. This leads me to believe Mycronic might be an interesting case. 

When Mycronic gets orders, the company is highly profitable, with ROIC above 50%. Moreover, the company is doing the right things to lay the foundation for growth. The revenues has doubled recent 4 years. I have a hard time believing orders from recurring customers won't continue to come in, even if the market most certainly thinks Mycronic is trading at cyclically high operating earnings. This seems to be nothing short of a bargain at (trailing) EV/EBIT 8,5 and a negative net debt (September 18, that is). This will be a short post, and not the type of posts I will normally consider to be "sophisticated". I hope to create a narrative for the future and do a valuation coming weeks, but no doubt, Mycronic looks interesting.