this call is really distressing. This one lady on the call (european) focused her questions on liquidation value.
This was pretty blunt.
I don't know what to think here. Either they execute and pull themselves out of this hole, or the inertia of all this bad backlog sinks the company into a dire situation.
the CEO talked extensively about the new rigor of future bidding which is what you want to hear, but what seems to bother the analysts on the call is how damaging the current and signed backlog projects will be to the next several quarters and beyond.
Johnson Rice seemed concerned about their liquidity situation as it relates to capex demands.
Unless I've misinterpreted what was said, the situation McDermott finds themselves in is very troubling.
So for now, I will not be adding shares here
If anyone has anything substantive to add, let's discuss. But what I don't want to hear is uniformed blather about how cheap McDermott's share price is and what a bargain there is to be had.
I had calls on this which I closed out yesterday was not going to sit thru an earnings report lost a few bucks but had bought them right so not a big deal. I agree with a lot of what you said. How can you know how much backlog is bad business which is another reason not so sure anyone would buy them its just too risky. Low 6's it may be worth a look and I am going to keep an eye on it.
I will mention one positive and that is the selling here seems exacerbated by the generally very weak stock market today. I wonder If the drop today would have been less severe if we had an up market today?