MCEM - I have been buying more of MCEM here in the $48's on the pullback over the past few weeks. Where USCR, SUM, and other concrete and cement companies trade in the +10x EV / EBITDA range, this concrete and cement company trades at 3.5x EV / EBITDA and pays a 2.5% dividend yield. The company just reported a $1.56 EPS quarter, but that included $4.4 million of expense related to a settlement. Backing that out, they reported $2.36 EPS for the quarter, up from $1.46 a year ago. I expect Q3 reported results to be closer to the Q2 adjusted results and a bounce in share price as a result.
At 6x EBITDA, the stock would trade closer to $77.00 per share, with a P/E closer to 12x, which I believe is more reflective of fair value. If they were to be acquired, I could see a 7x - 8x EBITDA multiple and a share price closer to $89 - $100.
