Gilead Capital Opens Huge Landauer Inc Position

Gilead Capital Lp filed with the SEC SC 13D form for Landauer Inc. As reported in Gilead Capital Lp’s form, the filler as of late owns 5% or 480,215 shares of the Health Care company.

Dear Members of the Board of Directors:

Gilead Capital LP (“Gilead,” “we,” or “us”) currently holds approximately 5.0% of the common stock of Landauer, Inc. (the “Company” or “Landauer”). Over the past 18 months of engagement with the Company, we have made clear to you our Leadership Investing strategy: to find and invest in durable, high-quality businesses underachieving their potential due to shortfalls in governance or leadership and, where the need and opportunity merit, play an active and constructive role in helping them reach their full potential. We have invested in and engaged with Landauer to help remedy this Board’s longstanding failures – a number of which are described herein – which we believe are responsible for the stock’s long-term underperformance and could endanger the realization of the long-term opportunities available to its exceptional radiation measurement business.

We write to you publicly only after constructively and patiently encouraging you over the past several months to follow Landauer’s codes of ethics and to address what we see as the Board’s major governance shortfalls. We had hoped to avoid the need to discuss this publicly and gave you numerous opportunities to deal with our concerns and consider our proposals privately and in accordance with your policies and procedures. You have instead demanded that we trust this Board with the Company in spite of its track record of failures as described below. That you do so while failing to adhere to your codes and to what we view as the most basic tenets of good governance has forced our hand and only made it more apparent to us how deeply entrenched these problems are and how urgently change is needed.

The Board Has Failed to Address the Executive Chairman’s Legal and Ethical Violations

We must first address the elephant in the room: Executive Chairman Michael Leatherman. Gilead has zero tolerance for illegal or unethical behavior and applies the same standard to those who represent us as directors. We thus feel obligated to speak up when we discover that our representatives are failing to uphold that standard.

On October 27, 2016, we asked Mr. Leatherman about the discrepancy between our public records search1 and Landauer’s repeated statements over the past eight years that Mr. Leatherman is a Certified Public Accountant (“CPA”).2 Mr. Leatherman conceded that he does not have a CPA license but brazenly dismissed our inquiry, asserting that he did not see “why in the world it matters.

Make no mistake – IT MATTERS.” – Gilead Capital LP

Landauer Inc Institutional Sentiment

Latest Security and Exchange filings show 122 investors own Landauer Inc. The institutional ownership shows a bullish pattern. In total 17 funds opened new Landauer Inc stakes, 46 increased stakes. There were 13 that closed positions and 30 reduced them. Institutional investors bullish on Landauer Inc, include Vanguard Group, Bernzott  Capital Advisors and Blackrock Fund Advisors. Bernzott owns a total of 474,380 shares which constitutes 3.70% of their total portfolio.

Analysts await Landauer Inc (NYSE:LDR) to report earnings on December, 12. They expect $0.29 earnings per share, down 27.50% or $0.11 from last year’s $0.4 per share. LDR’s profit will be $2.76 million for 44.18 P/E if the $0.29 EPS becomes a reality. After $0.49 actual earnings per share reported by Landauer Inc for the previous quarter, Wall Street now forecasts -40.82% negative EPS growth.