Cliff Remily: Ignore the Noise — Focus on Priorities – Long Subsea 7

The 10th Annual New York Value Investing Congress takes place in New York on September 8th and September 9th 2014. ValueWalk will be providing coverage of the event- below is a summary of a presentation by Cliff Remily on ignore the noise and focus on priorities.

Sign up for our free newsletter to get the coverage delivered to your inbox

Cliff Remily: Ignore the Noise — Focus on Priorities - Long Subsea 7

Cliff Remily, CFA is the founder and managing partner of Northwest Priority Capital, an investment management company investing across global equity markets with an emphasis on value and income opportunities. The funds include both hedged and long-only versions. Prior to founding NWPC Cliff was managing director and global portfolio manager at Thornburg Investment Management and most recently, co-founder of the Global Equity Dividend strategies at PIMCO.

Cliff Remily on Ignore the Noise — Focus on Priorities

A global generalist.

Cliff Remily’s Long Idea – Subsea 7

A basic value idea in the energy industry. Subsea 7 SA (ADR) (OTCMKTS:SUBCY) (STO:SUBCO) is an engineering and construction (E&C) company serving offshore oil and gas producers. Trades at 8x P/E and 4.5x EV/EBITDA.

Though cyclical the industry is attractive and the valuation is very compelling today.The bear case centers on E&P capex spending. Barriers to entry are high and long-term contracts and relationships help protect revenue. This is a decent business in a decent industry.

Insiders own a good portion of the company.

Some headwinds include a potential tax being added to non-locally owned operators in Brazil. Downside of roughly 20% and upside of nearly 90% offers a 3:1 risk reward ratio.


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others