Yahoo Finance Should You Hold Lifecore Biomedical (LFCR)?
Investment management company Cove Street Capital recently released its “Small Cap Value Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 7.82% compared to 6.23% for the Russell 2000 Index and 8.42% for the Russell 2000 Value Index. In 2022, the fund returned -10.34% compared to -20.44% decline for the Russell 2000 Index and -14.48% decline for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Cove Street Capital highlighted stocks like Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q4 2022 investor letter. Headquartered in Santa Maria, California, Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On January 11, 2023, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $7.26 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 7.72%, and its shares lost 32.15% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $219.953 million.
Cove Street Capital made the following comment about Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q4 2022 investor letter:
“As our largest detractor, Lifecore Biomedical, Inc. (NASDAQ:LFCR), formerly Landec Corporation, remains a disappointment in progress. The strategic plan that has extraordinary value potential called for an exit from all food businesses and a focus its fast growing, highly strategic CDMO (Contract Development and Manufacturing Organization) to the healthcare industry has simply taken nearly forever to accomplish. This was frankly mostly selfinflicted on several fronts: lack of urgency, a very poor choice on its investment banker (and their strategy to try and sell the food business as a portfolio rather than piecemeal), and forgoing chances to raise growth capital on advantageous terms. We have reinvested in the company in the form of a convertible preferred to kick the proverbial can down the road into 2023, when, we believe, the remaining food business will get sold, the CDMO will continue to grow and sizable new business opportunities will be announced. Can this company properly monetize the opportunities in front of them? Should it be sold to a larger company to enable said monetization? We expect decisions in 2023 on these issues to result in a far higher stock price.”
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Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
