High quality, recession resistant small-cap trading way under strategic value

Numerous reasons to think a sale is not too far off - if not, a high quality business with outstanding leadership on the cheap

• Outstanding margins, high return-on-capital business trading at a substantial discount to private market or strategic value

• Business has low economic sensitivity, low correlation to the general stock market

• Long-term CEO has an outstanding track record of shareholder friendly decisions and policies

• CEO (also chairman of the board) incentivized to sell the company “at the right time” due to large share ownership and generous change of control bonus payments

• I predict solid, low risk-returns until the company is sold

• If not, CEO is still on the hunt for an accretive acquisition - also potential for massive capital return given cash is ~20% of market cap, zero debt

• Bull case is tempered by a few clear risks - I review the key ones and how I account for them

• Average dollar trading volume 1 year: ~$970,000/day, 30 days: ~$395,000/day