Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Cal Dive Seems To Be Fighting The Tides

Offshore diving and construction specialist Cal Dive (NYSE:DVR) is an interesting story. The company's low stock price (close to $2 a share) catches an investor's attention, as does the fact that the shares trade below tangible book value and that there is a sizable short interest in the shares. If Cal Dive can drive better vessel utilization and reap the margin improvements that should come with it, Cal Dive is the sort of story that could spike fairly quickly.

The problem is that I'm not sure how likely that is. Recent awards have swollen the backlog to levels not seen in years, but it remains to be seen just how much they will improve utilization and margins -...

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