A Broken Thesis
In this article I cover a broken thesis and the worst percentage loss of an individual position in DeepValue Capital history.
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Accendra Health, formerly Owens and Minor, is a home health company that supplies medical equipment and disposable supplies. Think respiratory therapy, sleep apnea devices, diabetes care, and wound/ostomy/urology products.
The last time I did a full deep dive on them was in January, right after they sold off their old hospital distribution business and became a pure play home health equipment company carrying a lot of debt.
My thesis was fairly straightforward. They would use the proceeds from that sale to buy time, stabilize, and start generating cash. The stock and bonds were priced like the company might not survive when I thought it would.
They reported Q2 earnings on August 10th and the stock dropped over 50% but the picture didn’t fall apart all at once.
It came apart in pieces then it all crumbled when I got the full picture.
Any way I put it though, I am selling at a ~75% loss.
I’m Kyler Johnson, a husband, dad, and self taught investor of 7 years.
27K+ subscribers and 303% returns from Jan 2024 to July 2026 buying turnarounds.
I will be open and honest about my mistakes, if this isn’t proof I don’t know what is.
