Monday, July 18, 2016

Seeking Alpha: Chart Industries No Longer Left For Dead

Back in January, I thought investors had the sort of opportunity I love to find in the market - the chance to buy a stock that had been pounded because a major growth driver seemed to be evaporating, and pounded to a point where the less exciting, but still profitable, base business more than justified the share price. Such was the case with Chart Industries (NASDAQ:GTLS) back in January, and the shares have come back nicely since then, even though the LNG growth story is still in trouble.

I continue to believe that Chart Industries is a good company in the industrial gas/energy space. With the rebound in the shares, though, I think the dramatic undervaluation has been mopped up and investors now have to have more conviction and optimism about the future of the LNG business to drive a substantially higher fair value. I do believe that the company stands to generate hundreds of millions of dollars from LNG export/import facilities in the coming years, but the move toward a more significant LNG-based transportation chain in the U.S. is farther off and less certain in my view. Chart still looks like an okay stock in my view, but there will be a lot of bumps in the road over the next couple of years, and I think investors should typically shoot for better than "okay".

Read more here:
Chart Industries No Longer Left For Dead

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