I'm skeptical of businesses that struggle (or fail) to earn their cost of capital over a sustained period of time. That makes Great Lakes Dredge & Dock (GLDD) a more challenging company for me. On one hand, I like the company's strong share in its core dredging operations, and I believe there will be significant port expansion projects in the years to come. Yet, even with over 100 years of experience, the company's wobbly cash flow, returns on capital, and book value growth doesn't give me a lot of confidence, and the company's quarterly reports have had a flair for the dramatic lately.
These shares have rallied a third since their lows of the fall, but I...
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