Savvy Trades and Investments

[dmmm]

GV -- a quick point

I think the chances of another issue popping up - similar to the one GV had 3 quarters ago, stretching into Q2 - is being overestimated. One has to separate the Texas issue ($10.1M in 3 quarters, now complete) from the other issues (roughly $3M+ total over 3 years). Even if you assume they continue to have suprise "issues" of $1M per quarter they will earn roughly $.17 EPS, based on TTM earnings power ex-Texas -- that would be a 10 PE with free growth. The ending of the Texas projects is key. My position is that another catastrophe on the scale of Texas is unlikely to pop up, based on the fact that it has only happened once in the recent history of the company.

As always this is not investment advice.