Ishmohit, Having followed this story for over a year (albeit not significantly invested at any point of time), this seems to me like a lesson in understanding true moats of a company on the basis of one’s own research rather than blindly believing in moats presented by Management or experts. Sometimes experts can go wrong and Management can paint an overly rosy picture.
The “thesis bent and broken” moment came for me in the last concall when the new MD said Sequest doesn’t command any significant brand power in the market. That came as a shocker.
Although I firmly believe every business can be bought at the right price and I think Sequent will also reach that price. Continue to track the story in order to figure out if they are capable of winning CDMO contracts in the future or how they execute wrt the Bremer capacity.
Circle of competence lessons learnt with this one and another IT stock recently.
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