An intriguing short opportunity with $BMI.

The company produces water meters and modules that attach to the meters for automatic readings.

BMI has benefited from several demand tailwinds over the last three years, including the American Rescue Plan Act and increased water rates. And on the supply side, the rising costs of production inputs, including copper, steel, and chips, have allowed the company to pass these costs through to customers.

However, subsiding demand tailwinds, coupled with declining production input prices, have set the stage for operational performance normalization.

With generous assumptions, including a 25x P/E multiple, the stock might be worth $75/share or 60%+ below the current price levels.

Worth a shot?