Is SenesTech (SNES) A Great Long-Term Investment?

Long Cast Advisers, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the 4Q21 quarter (ended December 31, 2021), cumulative net returns of the fund were flat. For the year, net returns were 42%. Since inception in November 2015 through quarter-end 3Q21, LCA returned a cumulative 175% net of fees, or 18% CAGR. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Long Cast Advisers, mentioned SenesTech, Inc. (NASDAQ: SNES) and discussed its stance on the firm. SenesTech, Inc. is a Phoenix, Arizona-based biotechnology company with a $9.3 million market capitalization. SNES delivered a -21.84% return since the beginning of the year, while its 12-month returns are down by -58.20%. The stock closed at $0.76 per share on February 28, 2022.

Here is what Long Cast Advisers has to say about SenesTech, Inc. in its Q4 2021 investor letter:

“Senestech (SNES): This is an odd and unusual company that operates in the rodent control space. At the current price of $1 and with roughly 12M shares outstanding, the company has a market valuation of $12M. With $11M in net cash, this infers an enterprise value of $1M. It is burning cash while it tries to commercialize its form of “rat birth control”, arguably a more successful method at eliminating rat populations than poisons. Furthermore, it doesn’t harm predators further up the food chain, which is a growing concern as populations increasingly sprawl into more wildlife.

In 2019, the Board replaced the founders with a new CEO who is passionate about disrupting the industry with a new and arguably better product. While sales remain small, he’s already exceeded their
efforts. This is a bit of an “early stage” investment and it’s sized accordingly but in my “walk around research” I observe strong interest from many small and some potentially large customers.”

Photo by CDC on Unsplash

Our calculations show that SenesTech, Inc. (NASDAQ: SNES) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SNES was in 3 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 3 funds in the previous quarter. SenesTech, Inc. (NASDAQ: SNES) delivered a -38.80% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.