Agreed. A few things to consider, depreciation is unnaturally high this year from previous CAPEX binge. Once you factor in normalized depreciation, the profit margins are much better. We see a lot of potential buyers for CBEY. Tons of SGA to cut from this business which would make it instantly accretive.
The replacement cost for the company's assets is ~$450m vs. the current enterprise value of $161m. We're not predicting they sell for $450m but a bid for $11 would equate to $322m which shows the tremendous upside potential here. The selling today is clearly one of the big mutual funds trying to lighten up. They have no regard for the price because it's a minuscule position for them which results in this outsized move. We’re buying down here.