Derek Cheung of Honne Capital posted an intriguing presentation of Sientra (SIEN, $6.68) a couple months ago that prompted me to dive into the company. Long story short, Sientra sells breast implants which in the US is a triopoly (I may have made that word up, to clear up confusion: only three companies sell fake boobs). Sientra was buzzing along just fine until late 2015 when their third party manufacturer had some issues during a regulatory inspection. To add fuel to the fire, this manufacturer’s plant burned down shortly thereafter. In response, Sientra voluntarily halted all US sales of their breast implants, but it looks like they’ll be back selling again next month.
On October 28, Sientra held a conference call to discuss the above issues. Then-CEO Hani Zeini made a comment that the fire took place in building F2 which is where Sientra’s implants were produced. Another building, F1, was not affected and could potentially be modified for breast implant production. My first thought upon hearing this comment was, “What if F1’s capacity isn’t what F2’s was?” Sientra could have production bottlenecks for some time. And off I went to Google Maps in search of an answer.
Continue reading “Scuttlebutt on Google Maps”