Selling Cenovus: Up 78% in 10 Months
Cenovus Energy, up 78% in 10 months, is sold after agreeing to buy Athabasca Oil for $5.7 billion at a rich valuation.
Cenovus Energy, up 78% in 10 months, is sold after agreeing to buy Athabasca Oil for $5.7 billion at a rich valuation.
1/ So first things first, $HHH missed on top and bottom line. Am I concerned? Absolutely not. Value was created for shareholders and I'll briefly explain why...
$OII Niche leader in subsea robotics at 12x P/E. Offshore rig count accelerating (70% share), A&D growing DD, new autonomous tech a major growth driver in other end markets (lifts, etc). Investor day next week will showcase products and new LT targets. >50% NTM upside, IMO.
@TheMuffinMan28 SRS is a PE rollout, bit of a hodgepodge of assets. Concentration in landscaping, pool and roofing. No exclusive relationships (GMS is for $AWI, regional duopoly across most categories). End customers are small homebuilders (more competitive, less scale benefit for distributors).
$GMS Underfollowed building products distributor, HSD growth, favorable mix shift/ margin, tracking to beat estimates, trading at 10x EPS, 7x EBITDA. Peers at >50% higher multiples. $HD just acquired lower quality peer SRS for 17x EBITDA. GMS = $240 or +150% at that multiple.
$LYTS Very attractive acq of EMI following successful prior M&A blueprint--significant cross-selling op, cost reduction, expands product set which further solidifies dominant national position. Seeing +50% upside to shares from here.
@DeepDuDiligence Doing some DD on $TPET at the moment, have they given any guidance on how many wells they expect to start producing this year? Or what the BOPD could be?
@Tonyforever2003 @marketplunger1 This is exactly what came to my mind when reading this. I'm long $GPRK and $GTE for precisely this reason.
Here is a little pricing guide for any of you looking into $HHH at the moment. Credit to @mfwarder for the format. https://t.co/MeZP5qopmR
Portfolio added Otis Worldwide in the mid-$60s, increased Pool, Copart and Floor & Decor, and sold Berkshire Hathaway.
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