Savvy Trades and Investments

[dmmm]

I'm buying GV here

I find management's explanation of the Texas issues convincing. Management has been consistent that these projects will finish in Q2 and they finished on schedule.

Now, there is probably a systemic problem in GV that allows for a project in Texas to turn into a total disaster, so I would not pay 15x earnings for GV, but I think it is excessively cheap now.

Also note that the losses to discontinued ops (for remediation) are ending & were complete by the Aug 14 PR. If you ex that out they actually made 10 cents in Q2. In other words, Q2 really was a blowout quarter, their 2nd best ever, except that the true earnings power of the business was hidden by temporary losses in an old project. If you ex out Texas and remediation (both ending) they made $.27 EPS in the TTM - so an adj PE of 6.5. I think this more accurately describes the earnings power of the business.

I bought some at $1.74-6. Will be adding unless it goes way up from here. I would be surprised if it went much lower as there was support at 1.70 during the aug crash.

As always this is not investment advice but a teaser to get people to do their own research.