By and large, investors do well for themselves if they assume that
something that looks too cheap to be believed shouldn't be believed. Of
course, carry that philosophy too far and you miss most of the really
impressive turnarounds and long-term growth stories.
That brings me to Global Power Equipment (GLPW).
This company has been suffering lately from lower service demand and
delayed orders, but nevertheless offers an intriguing mix of sustainable
recurring revenue and leverage to natural gas-fired electricity
generation expansion. A discounted cash flow suggests significant
potential undervaluation, but investors would do well to remember that
many power/utility-focused companies have ultimately disappointed
relative to their long-range forecasts.
Please continue here:
Global Power Equipment Is Either A Big Value Or A Trap
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