You can run your PA as you see fit. We would suggest this is your second largest position as is ours. This recent presentation does a perfectly legit pitch.

What is not in here is we are “almost” at the end of a ridiculous parade of secondary offerings by PE, by which two allegedly smart and renowned groups have shown near zero sense of how to operate in public equity markets, a theme which we have noted has legs and presents an opportunity. In the short-run, this has punished shareholders while underlying fundamentals continue to drive forward.

The good news is that thanks to a LOT of initial persuasion by CSC, the company has repurchased roughly 16% of its stock in the last 18 months at what we consider stupid cheap prices through these discounted offerings. We would suggest the proper multiple for this company is 50% higher if you consider where specialty chemical companies trade in both public and private markets, the variable to which one applies this math is growing. One can also consider “Where do 35% margin, growing, 75% free cashflow conversion companies trade?” It’s not 8 handle multiples.

While we are plugging, what we have suggested to a certain number of you is that there are a LOT of “hung” PE ownership positions in public companies. They appear to have little skill in understanding how to navigate public markets and they seem to be on the receiving end of the usual awful and tone-deaf advice from bulge-bracket investment banks. We have a small(now) fund that seeks toehold positions piggybacking on our core efforts and then we create side vehicles where we relieve PE of their burden and take concurrent governance roles on the board. We proved out that a $300mm deal here was “optimistic” given our size. It shouldn’t be your problem. And we have smaller versions of this in hand. Operators are standing by.

**Please see CoveStreetCapital.com for the usual disclaimers and compliance on talking specific positions.