CVU I've been buying CVU in the $6.40's to the $6.60's. Big position. Obviously the integration of recently purchased WMI hasn't gone well, but it was fairly small add on, and should start to really benefit CVU in the second half of 2020. Right now, and probably through at least the March quarter....WMI may be a hindrance.
Nevertheless, CVU is very inexpensive. Balance sheet fine, trades at 75% of tangible assets, with little debt. And their backlog is exploding.... hit a record $534 million last quarter. They sound optimistic, especially starting the second half of 2020. I think they should be able to at minimum hit the analysts .80/share estimates for 2020. They should show nice revenue growth of around 10% in 2020, and the great thing is solid growth should continue into the next few years.
So with the solid financials, good growth, decent sector (defense), etc.... I'd value CVU at a 12 p/e on 2020's earnings, or around a $9.60+ target.
The longtime CFO left in November. You never know what that means....could be some negatives coming out, but the good thing is that he has been a horrible CFO with CVU having loads of financial troubles during his tenure. They are better off without him. The new CFO was a former VP and Controller at defense giant L3...I am real happy about that switch. Luv for the CEO to be gone too, but maybe later.
I doubt it happens, but I think if they'd put CVU up for sale she's fetch well over my price target.
I am partially buying this as one of my December Tax Loss Buys...so I am hoping for some of my inventory to be short term.
best.
