There was a point in time when Headwaters (HW) was an interesting play on clean(er) energy, what with its coal conversion, coal cleaning, and catalyst technologies. As it turns out, most of those energy opportunities really couldn't stand on their own merits and one by one fell to the wayside. Now the company stands as a debt-ridden building products company operating in one of the worst construction markets in living memory. While that sounds bad, and is indeed challenging, it looks like a series of asset sales will keep the company in place to benefit from that eventual rebound in construction activity.
Farewell To Ethanol, Coal Cleaning Next?
Headwaters started the year by announcing the sale of its 51% interest in the Blue Flint Ethanol LLC to its partner Great River Energy for $18.5 million. That was about 20% better than management had led the Street to believe and the added balance sheet flexibility is welcome.
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Will Exiting Energy Re-Energize Headwaters?
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