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Edgen Group Inc. Message Board

  • rdravin rdravin Aug 17, 2013 12:20 PM Flag

    Jefferies Conf and Pop

    EDG has been in the dog house since Q2 results. 8/16 it popped 8% to 7.58. What's going on. I need a little help from Class A or Class B shareholders.

    EDG had unannounced presentation at Jefferies 2013 Global Industrial Conference. It showed up under SEC filings. They have the presentation posted, but no audio of webcast. The presentation showed where they have been (out-house) up to H1 2013. There was no discernible guidance for H2 2013 or 2014. However, I believe CEO said EBITDA will catch up (hopefully) in second half.

    Perhaps the spike is due to news about trade dispute filing with the Feds. Apparently, US pipe makers are protesting pipe imports from Asia. EDG has complained about soft pipe/steel prices adversely affecting margins.

    However, my leading indicator, MRC, did not show any significant spike. MRC has been doing much better earnings wise. They may not be as leveraged to the Fed news.

    Why am I holding EDG? It's a complicated corporate structure with "non-controlling" interests showing on the Balance sheet, and Class B with 24 mil share and Class A with 18 mil shares. Performance has been bad.

    The main highlight is that there have been no insider sales. Perhaps Class B does not appear in filings. Also, I like the leverage to the oil an gas industry. Macro trends should in theory propel performance.


    Sentiment: Buy

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