This stock is way too cheap. Given the backlog, $2.00 per share is in the bank. 5 1/2 P/E ratio? Crazy. Cleaner business now that the chiller business was sold. No one has mentioned the dropping of the HVAC business which was another noncore business. Now we are down to the filter business and pipe. I believe the objective is to sell the filter business but with the Obama tirade against the coal industry, now may not be the time.
Scenario: Management drives EPS higher via an improving worldwide pipe business. Price of the stock soars and then they sell out to one of the several buyers that have tried to buy this company. Management owns 20% of this Company and they will not let this developing opportunity slip buy this time around. No matter how you slice it MFRI is dirt cheap.
Sentiment: Strong Buy
I read the seeking alpha article. Basically the assets other than current are 25 hotels that they have been converting to franchises. The hotels are not generating any type of a margin given the low revpar numbers. While some hotels have been sold for gains others have not. The franchise business is marginally unprofitable as is the entertainment division. They are paying sky high interest rates on the debs which I am guessing they can refinance. Finally they used a bunch of the owned hotels to secure the new financing. The company was shopped recently with no takers at the urging of a large holder. If I were the large holder Id be concerned that this one may be on the path to a flame out. Can anyone explain why this should be bought and not shorted?
Very bullish 13d amendment. Grande's sale will result in a sale of all of MSN. There are plenty of natural buyers!
Sentiment: Strong Buy
Agreed they need to get the story out there as it is now a good one. The stock is at 6x this years EPS which is dirt cheap. Dividend is unlikely for sometime as the business is growing and they need the working capital for inventories etc. Growth in EPS is the key to a much higher stock price
Per my analysis the other day, now two 13D holders file with no clue that this thing is overvalued even at $5.30. I suppose they were involved with the seeking alpha piece also. As I said before, this thing has been shopped, no bids and has a dim future at best.
Sentiment: Strong Sell
Agreed Looks like they are dressing this up for a sale. Only division that needs to go is the filter biz. Management owns 20% and this earnings upswing provides the out.