New Capital
Contrarian, deep value, long/short equity, special situations

TGS Nopec - Wide-Moat Natural Monopoly With 50% Upside In A Year

(Editor's Note: TGS NOPEC trades under the ticker TGS.OL on the Oslo exchange with average daily volume of ~540 million Norwegian Krone.)

TGS NOPEC (OTCPK:TGSGY) (OTC:TGSNF) has everything value investors could dream about:

- Natural monopoly with pricing power;

- Wide-moat, asset-light and flexible business model;

- Management with proven track record, low compensation and significant holdings in the company;

- Long history of excess returns, with ROE=22%, BV growth of 20% over 10 years;

- High profitability with EBITDA margin of 80% and net margin of 30%;

- 4-5% dividend yield and share buybacks.

Due to Oil & Gas industry cyclicality the company is currently out of favor with investor. This creates a buying opportunity...

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