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OSI Systems, which owns Rapiscan Systems (a large manufacturer of airport scanners), appears to be rotten to the core.

We believe the company bribed government officials in Albania to get a concession with a top line value of $150 million to $250 million by literally giving away half of the concession to a highly suspect partner. A major contract in Mexico is up for renewal, and pricing on the original six-year contract seems unduly rich – even egregious. We estimate this one contract, despite being only 15% of revenue, accounts for about half of the company’s EBITDA (a key profit measure). If this renewal is scrutinized closely, it could result in a substantial impact to the company’s financials.