Barron's Article on HIL
As my regular readers know (all 47 of you), I have a Misc portfolio that has been lagging the results of my other portfolios. One of my names is HIL. It is about 7% of the total Misc portfolio and trades at $5.30. I started buying them in May and have an average basis of $5.01.
Barron's today had an interesting article about them. Here is link and a few key excerpts (Engine Capital Approaches Hill International - Barron's).
HIL trades at 0.6 x revenue and 6 x EBITDA while peers are 1.0 x revenue and
9 x EBITDA. So that tells you there is room for improvement. Barron's estimates
$8 to $9 value at normal multiples.
It is reported HIL has hired a banker and even without a banker the valuation gap
could close with a few good quarters and finishing restatement of financials.
Obviously that would be a 60% gain for me if the $8.50 range. Fingers crossed that we get a catalyst.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment