Special Situation Companies Company should possess a viable product and/or service within its target market. Company should posses a low amount of financial leverage but a high level of potential operating leverage. There should be the presence of a positive catalyst such as a management change, new product development, an acuities joint-venture, merger or acquisitive, etc. All companies, which we focus upon, must be profitable on a cash basis (i.e Net income plus Depreciation & Amortization).
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