What we said:
Special situation equity. No debt, $120 million cash, $86 million market cap, deeply negative enterprise value. Yet this company is close to reaching profitability, has well-regarded products and is strongly positioned in an oligopoly, non-cyclical business (breast implants). New CEO is a fantastic manager, having turned around Neutrogena (sold to Johnson and Johnson), Revlon and founding a pharmaceutical company later sold to Valeant.
Thanks for the Mammaries
What happened: On February 8, 2016—two months after the publication of our research—Sientra announced that it would resume sales of its breast implants. Shares reached $25, 6x our cost basis.