market folly

We're posting up notes from the Sohn Investment Conference in New York, produced in partnership with Bloomberg LINK.  Next up is Mariko Gordon of Daruma Capital who pitched three ideas: Electronics For Imaging (EPII), H.B. Fuller (FUL) and Pacira Pharmaceuticals (PCRX).


Mariko Gordon's Sohn Conference Presentation

Talked about how everyone has short holding periods of stocks now. Three ideas.

Long: Electronics for Imaging (EFII).  Conversion from analog to digital printing. Company makes large-scale inkjet printers for printing tile, facades, even surfboards. Razor/blade model.  They were not selling ink, but will be soon.  $60 PT, 20x $3/share in 2016. 

Long: HB Fuller (FUL).  Specialty adhesives company. Cut 13 plants down to 7, 1400 employees down to 1000.  Reduced SKUs by 45%.  Only 15% EBITDA margin target though.  $70 PT, stock is $45 now. Bull case target is $90, needs more growth.

Long: Pacira  Pharma (PCRX).  Pain killer medicine..  Costs 100x more than the generic. Lasts up to 72 hours, vs other up to 8 hours. Drug is Exparel. PT $150, stock is $70 now.  Early stage company now, based on 10% market share. $250 bull case PT on 20% market share.

Be sure to check out the rest of the presentations from the 2014 Sohn Investment Conference.