MVCO
Yinser, the $500 million of bidding refered to in the conf. call was just for contracts/jobs exceeding $20 million MVCO has a thriving business in the under $20 million category, but they needed the bonding capacity to go after more larger projects. As much as I hated the 20% dilution of the secondary, and it's pricing, the 33% increase in bonding capacity is critical for growth.
What interested me more about the conf call, and I may followup with a phone call to the CFO, is the two large claims that MVCO has outstanding, each of which could result in $0 to over $6 million to MVCO. I assume MVCO has already expensed the work, the claims are not receivables until they settle or win an award, and anything received could flow to the bottom line. I think MVCO is one of the most undervalued construction companies out there. They just need to get larger.
Tmcal
