Gardner Denver Could Sink On Lockup Expiration

November 8, 2017, concludes the 180-day lockup period on Gardner Denver Holdings Inc. (NYSE: GDI).

When the lockup period ends for GDI, its pre-IPO shareholders, directors, and executives will have the chance to sell their more than 148 million outstanding shares. The potential for a sudden increase in stock available in the open market may cause a significant decrease in the price of Gardner Denver Holdings shares.

(Source: S-1/A)

GDI's group of restricted shareholders includes sixteen individuals and numerous corporate entities.

Currently, GDI trades in the $29 range, above its IPO price of $20 and significantly higher than its first-day closing price of $22.10 on May 12, 2017.

Business Overview: Provider of Mission-Critical Flow Control and Compression Equipment

Gardner Denver Holdings provides mission-critical flow control and compression equipment. It also operates within related aftermarket parts, consumables, and services in the United States, Middle East, Africa, Asia Pacific, and Europe. The company serves three segments: medical, energy, and industrials.

The medical segments designs, manufactures, and sells a varied array of specialized liquid, gas, and precision syringe pumps and compressors used in blood dialysis, oxygen therapy, laboratory sterilization, patient monitoring, and wound treatment. The energy segment designs, manufactures, sells, and services liquid ring vacuum pumps, displacement pumps, engineered fluid loading and transfer equipment, and compressors. This segment also operates in the aftermarket parts, consumables, and services under the Emco Wheaton, Nash, and Gardner Denver brand names, as well as serving clients within the downstream, midstream, and upstream energy markets. The energy segment serves the general industrial, transportation, and petrochemical sectors. The industrials segment provides and services an array of air compression, vacuum, and blower products in the primary and secondary markets. Its products are used in process-critical applications, such as aeration of wastewater, vacuum packaging of food products, and industrial air tools.

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Disclosure: I am/we are short GDI.

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any ...

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