Dane Capital – Limbach: Potential 3-Bagger, A Surprisingly Feasible Scenario – ValueWalk Premium
Limbach

Dane Capital – Limbach: Potential 3-Bagger, A Surprisingly Feasible Scenario

This article first appeared on HiddenValueStocks

  • Shares of Limbach appear extremely cheap based on 2018 EBITDA guidance, which includes unanticipated expenses (aka one-time) that are unlikely to recur in
  • Assuming nothing worsens when the company reports 3Q results in November, we expect a significant relief rally. Recent management commentary appeared bullish regarding
  • Adding back non-recurring costs, substantial backlog growth coupled with higher pricing on that backlog, and a recently announced accretive acquisition, EBITDA should expand dramatically in 2019, even with conservative
  • We believe that 2019 EBITDA that could approach $37-$41mn$18-20mn in 2018. Additional acquisitions or  reimbursement from claims settlements could add further EBITDA upside.
  • At a 1-2 EBITDA turns discount to 2019 peer multiples, Limbach shares would triple. Heads, I win (a lot); tails, I don't lose much!

Q3 hedge fund letters, conference, scoops etc

 

SORRY!

This content is exclusively for paying members.

If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.


X
Saved Articles
X
TextTExtLInkTextTExtLInk
0