u/Wise-Shallot8683

disclosure: I rated Humacyte Caveat Emptor after getting supremely angry at the Board on their last financing round with Avenue Capital, which has all the structuring of a debt-induced take under (swindling) of the retail shareholders (financiers) and driven by the unscrupulous management.

Not least because the Board and leadership are some of the most erudite professionals at what they do, and the Chair, who is the husband of the CEO, a former CEO of Credit Suisse, was convicted of bad faith in finance in the case of Bastone v. Exos Financial.

But I happen to believe in redemption, too.

Humacyte is a cutting edge platform which allows blood vessels to be stored at room temperature for months at a time before being installed in the body. Upon this manifold, the individual's cells repopulate and the resulting vessel is wholly cellular - there is no synthetic material residue.

This science has been at the center of attention in FDA and targeted by reviewers with conflicts of interest, leading it to come to market later than expected, and with a black box warning label.

However, soon there will be the results for a supplemental BLA - V0012 trial for the next generation of autologous vessels for dialysis.

More importantly, this platform which allows human cells to repopulate can be explored for organ transplants, as well.

It has recently been listed for a US Department of Veterans Affairs Strategic Acquisition Center, and a Board Member came into the market yesterday for open market purchase on the order of 60,000 shares.

disclosure: I am holding a trimmed position and substantially underwater, when it was posted to the board that there were layoffs at the shop a few weeks ago. I am absolutely infuriated with the way this has played out and the blackhole management strategy.

But I love innovation, too.

Here's to innovation and redemption.

After getting good and grumpy about my last MCD experience, Grocery Outlet comes across the plate.

This is an interesting model, growing its geographical footprint and brand by creating a network of independent operators, with whom it splits gross profit, and offers inventory to those operators on consignment, availing the community of more opportunity to learn business by lowering the cost of admission.

Additionally, the shelf offerings are selected by local operators from inventory cultivated by head office which acquires overstock and bulk items, thereby tailoring product offerings to the local community.

Most importantly for you here, it is coming off a FY 2025 with increased sales to $4.7 billion on a market cap of ~800 million - so obviously a lot of hair on it. They kitchen sinked the annual report taking Goodwill impairments, Long lived asset impairments, and restructure charges and presented -225mm net loss, and -222mm operating loss.

I am taking a size controlled leg here at 0.18x sales for no other reason that that it is dirt cheap, loved by the people who shop there, and community oriented - that is my duty.

As always, I am prepared for community blowback.

I have a lot to say about GAP, but need to keep it pretty quick for now.

It gives:

- 3% yield
- 10.5 p/e
- tarriff reversal
- authorized buyback
- upcoming ad campaign
- trading below 200 dma

This profitable, cash producing company is in a full turn around under relatively new CEO, and I put a leg on today.