Had a look at #cleanscienceipo
My key takeaways:
1. Really specialty chemicals. Many cos operate under the guise of specialty but this one is the real deal. They did not file patents to protect their process IP.
My key takeaways:
1. Really specialty chemicals. Many cos operate under the guise of specialty but this one is the real deal. They did not file patents to protect their process IP.
2. Margins and unit economics top notch. Even china imports from this Co. Wow. Invested in backward integration recently to increase gross margins. Only depend on commodity chemicals as starting materials now.
3. While last 3 years profit CAGR was 42%, i don't think next 3 years will see repeat.
(i) topline growing at 14% in an industry growing at 8-11%.
(ii) some operating leverage and favorable product mix can take profit CAGR to 18-20% IMO.
(iii) I Won't pay PEG of 2.5 for any biz
(i) topline growing at 14% in an industry growing at 8-11%.
(ii) some operating leverage and favorable product mix can take profit CAGR to 18-20% IMO.
(iii) I Won't pay PEG of 2.5 for any biz
Only airing my own thoughts. This is not a buy or sell reco. Do your own due diligence.
^You read that right. Co was worried that if they filed patents, someone would copy their processes and they wont be able to enforce patents. So they did not file patents :D Epic.
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