This stock doesn't deserve too much attention and "good buy price" doesn't exist here. It is more like a gamble now. Maybe, guys will right this ship or maybe not. Chances are not too high.
Everyone that bought this thing made a mistake and averaging down on a leaking ship is not a sound strategy.
Earnings may show seasonal improvement in Q3. It would be a good time to get out; hope with tolerable losses.
to me, ORN is cheap on a book value basis, price to sales basis, --- but its earnings are anemic. ANd that ultimately is what investors pay for. I do think the earnings will come --- but when. And from where ? Tampa has proven to be a reliable excuse for some time. ANd the all elusive deep water projects too. Army Corps lettings not what they are supposed to be - - - ta da ta da. Little for investors to grab on to here. But --- its not overly priced. It is being run reasonably well --- its just in need of a turnaround. Any upde earnings surprise, a positive contract award, or even a takeover id would put this at an easy double in my opinion
I agree you think they could be putting some news on contracts or updates in Florida ,I have bought this for some small change .I think there has been some small interest from some funds.I am going to wait before jumping back in .Their are setting lower highs. I thing $4.40 is going to be my next buy in .ant thoughts
after the performance of the last year, who could blame them for wanting to change names ? For all the issues and questions plaguing Orion right now --- this is one sorry #$%$ piece of news to roll out with.
So it is "weird" now, while it was "impressive" a message before? Talking about "timing", I suggest to check the actual balance sheet; it was the same unimpressive a quarter before. Basically, company took on very sizable debt without having reasons, aka profitability, to do it. In result, you have a small-cap stock, hardly profitable, saddled with big debt, while recession calls are swirling around. Any newcomers?
Yeah that cash situation is weird but didn't they also mention that it was a side effect of timing? If that's true, there's nothing there to scare away investors if ORN can surprise us with a good quarter. And with the shares being all institutional holder who are in at a loss right now, I don't think newcomers will get in very easily once the price starts moving.
ORN guys told about seasonality for many years; mostly, in the way, of getting away from the seasonality. Obvious, it is kind of long-term ongoing process.
Also, I wonder which part of the balance sheet you consider impressive. If memory serves, CFO mentioned this word "impressive" during the conf. call, right after telling that they ended quarter with about $2M in cash and $100M in debt. My apologies, if I confused the numbers. In any case, look for your help to get better handle on "impressive" part.
You should read through the GLDD earnings call transcripts. Q1 is the slowest quarter for marine work, mostly because of the weather. GLDD stated that the domestic dredging market is picking up and margins are increasing. I'm not sure if this will affect Q2, but it seems like the back half of this year when they start to hit some of the newer contracts, the margins should increase as well.
I completely agree with your last post about this stock being priced for a huge rebound. The balance sheet is real impressive and the merger with TAS could not have gone any better. GLDD has been killed by a terrible merger during last year. They got swindled into buying an environmental remediation company at it's peak value... after that a few of it's projects got delayed and it's just suffered huge losses every quarter. Something like half the board resigned over it.
Unfortunately, GLDD dominates the dredging market, so they'll benefit most from those margins
This Tampa saga is a glaring example of mismanagement and it seems no one in top management lost job in this shameful story; all losses have been moved smoothly to shareholder shoulders and pockets.
It is a permanent dark spot on this company record and investors will have to remind it every time when they evaluate this business prospects in future, every time when management promise improvement next quarter. It means that situation may improve in second half of this year; share price may recover some room, but one should take this business quality at face value. It is low.
got stuck under ORN. Todays civil marine numbers were horrible. Wow. I didn't expect that. Seems the issues are far greater than those blamed on Tampa. Seems the only hope now is the 2nd half promise for better based on order timing. THe drought has been going on a long time at ORN ----
If Orn can fix its Tampa issues and if they can sustain recent momentum and get margins in to the high single digits we will see ORN as a $20 stock. I should be the objectives as they are quite doable and ordinary. Selling at 0.6 X Book Value with modest debt levels ORN is priced for a correction. With the TAS purchase, management replacement in Tampa, and a poor stock price there is plenty of motivation for a total turnaround by all levels of employees and plenty of pressure from shareholders.
The demand or services is out there. ORN has become one o my larger holdings for no other reason than it is poised for a major turnaround given its very cheap metrics. Management has engaged it would seem and results should follow --- and we should see a significant rise in the stock price with the first good upside earnings surprise.
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