Savvy Trades and Investments

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GV dipping below $4. Couldn't resist buying some. Seems like a favorable risk/reward into earnings next month. We've had a lot of rain here in Texas in Sept & Oct...so I can see GV having to take a charge in Q3. But some of that is priced in down here imo. Maybe things will be fine...and the stock shoots back up to $5+. I do love the easy Q3 comp. Even a decent quarter will look fantastic vs. last year.

Q3 might be a dud, but GV still has plenty going for it. There was some upbeat commentary from the last CC (below) regarding potential work from a major new utility customer. They're 100% based in the US, so no need to worry about the escalating trade war with China. And according to their website, GV continues to hire like crazy (click on red Search button):

https://www.pcapower.com/careers



Here's some of the prepared comments from the CEO during the last CC:

These results demonstrate that the fundamentals of our business are robust and provide us opportunities for continued growth. We anticipate momentum will continue through 2018 due to a healthy backlog and a strong bidding climate for future project opportunities. Industry activity and trends continue to point to historic investments in electrical infrastructure.

Now, I would like to share with you some developments during the second quarter we believe will put us in a favorable position to capitalize on this healthy market for years to come. In our Texas and Southwest operations, we have been awarded work under a recently signed 3-year MSA mentioned last quarter. We expect to be bidding on projects covering multiple regional offices from another major utility added in recent weeks. As additional utilities are added, our bidding opportunities will also continue to increase. Our experience, proven track record and depth of resources enable us to offer our expertise in bringing projects to a successful and timely completion. We have established a substation construction operation in our Mid-Atlantic office and we are in the process of bidding an MSA agreement with a major utility for substation projects.

Finally, as we continue to increase the number of utilities for who we work, projects should become more consistent throughout the year. This will provide a significant positive impact, especially for Texas and Southwest and Mid-Atlantic operations. Our priority is to focus on continued growth and sustainable profit margins for our shareholders. Accordingly, we remain committed to project execution and a disciplined approach in all our bidding and operational activities.


And then this little tidbit from the CEO during the Q&A:

We have recently added another utility, AEP to our group of utilities that we work for. We haven’t done any work for AEP yet, but they are an enormous utility that run not only in the Texas and Southwest, but through the Mid-Atlantic region. That’s a big deal. But it’s important to us moving forward. But again I reiterate we have not yet we have been approved here in the last few weeks and expect to start receiving work to look at late this month.