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Toby Shute

 
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  • Overlooked World Energy Solutions: High-Margin Recurring Revenue Growth Business With Near-Term Catalysts Available At Deep Value Levels [View article]
    For context, this $5.50 price just takes us back to where XWES traded prior to the accounting restatement debacle in late 2012 / early 2013.
    Nov 5, 2014. 09:34 AM | Likes Like |Link to Comment
  • Overlooked World Energy Solutions: High-Margin Recurring Revenue Growth Business With Near-Term Catalysts Available At Deep Value Levels [View article]
    At 2.5x recurring revenue with nearly 90% gross margins, I would say so. Especially for a strategic acquirer.

    After reviewing the slides linked below, I am somewhat more optimistic that a better bid will surface. They did not shop the company. This was an unsolicited bid by ENOC.

    http://1.usa.gov/1Gpg6sh
    Nov 5, 2014. 09:29 AM | Likes Like |Link to Comment
  • MCG Capital +14.5% on tender offer; more on Q3 results [View news story]
    Yes, they are selling aggressively into a liquid market, while it's still liquid. I dig it.
    Oct 30, 2014. 05:18 PM | Likes Like |Link to Comment
  • MCG Capital +14.5% on tender offer; more on Q3 results [View news story]
    Your numbers seem reasonable, and would indicate ~$4.05 in liquidation value if pulled straight out of the 9/30 NAV. There may be some off-balance sheet upside here, in the form of a potential litigation recovery from Color Star Growers as well as the substantial NOLs. Liquidation is one of several scenarios, not a foregone conclusion. They could sell the biz to a larger BDC, or look to restart once everything is totally stabilized. The new CEO does not strike me as a caretaker. It is conceivable that, having scrapped the SBIC license, MCG could elect to no longer be a RIC and pivot to being a taxable entity (i.e. merchant bank) to make use of the NOLs. I would have to look into the RIC regs. Just a thought I had today.
    Oct 29, 2014. 10:09 PM | Likes Like |Link to Comment
  • MCG Capital +14.5% on tender offer; more on Q3 results [View news story]
    Still trading at a wide discount to NAV after the announcement. Price of $3.66 vs. $4.48 9/30 NAV implies a ~41% writedown on the investment portfolio. Per the press release, they sold all their non-accrual (i.e. problem) loans that haven't been written off completely. So the book looks pretty clean. This gap ignores the $0.05 accretion of buybacks subsequent to quarter end. More good things to come, I think.
    Oct 29, 2014. 11:30 AM | Likes Like |Link to Comment
  • Overlooked World Energy Solutions: High-Margin Recurring Revenue Growth Business With Near-Term Catalysts Available At Deep Value Levels [View article]
    They sold their position all the way down to 100k shares, per this filing:
    http://1.usa.gov/1xKMT8l

    They'd held 800k shares as of year-end 2013:
    http://1.usa.gov/1xKMT8p

    It seems they got impatient.
    Oct 3, 2014. 10:38 AM | Likes Like |Link to Comment
  • Overlooked World Energy Solutions: High-Margin Recurring Revenue Growth Business With Near-Term Catalysts Available At Deep Value Levels [View article]
    I'll add my kudos as well. Well presented, and I agree that hardly anyone is paying attention here. Royce recently blowing out their 6%+ position is a prime example.
    Sep 30, 2014. 10:10 AM | 1 Like Like |Link to Comment
  • Bad News Is Good News For Tetra Tech [View article]
    This afternoon's announcement is roughly what I was looking for -- an aggressive move to shed risky/low-margin business. Thesis is intact.
    --
    PASADENA, Calif.--(BUSINESS WIRE)-- Tetra Tech, Inc. (TTEK) today is providing an update on its previously announced plan to restructure the Remediation and Construction Management (RCM) segment. Tetra Tech has completed the RCM segment strategic review, and has decided to retain its core environmental remediation, pipeline, solid waste, and utilities related activities, which collectively represent approximately one half of the RCM segment revenue in fiscal 2014. Tetra Tech will exit all non-core construction markets that require lump-sum fixed-price bidding, which represented the remaining fifty percent of the RCM segment revenue, or fifteen percent of the Companys total revenue in fiscal 2014. Tetra Tech will continue to offer turn-key solutions for clients by acting as a construction manager or teaming with constructors.

    At the beginning of fiscal 2015, the portions of the RCM segment that are core to the Companys business will be moved to the two front-end focused segments. Substantially all non-core portions of the RCM segment will be closed, sold, or completed in calendar 2014. Revenue, net of subcontractor costs, will be reduced by approximately five to ten percent from fiscal 2014, through these actions. The construction work being exited represents the highest risk and lowest return work within the Company, and did not generate profit or positive cash flow in fiscal 2014. After exiting non-core activities, the Company then plans to report results through two operating segments.

    Dan Batrack, Tetra Techs Chairman and CEO, commented, This review has resulted in Tetra Tech being more strategically focused on the front-end science and engineering aspects of a solution that differentiate us in the marketplace, and are the hallmark of our offering. After these actions, Tetra Tech will be positioned to generate higher operating margins, improved cash flow, and the consistent performance that is characteristic of our front two segments.

    Tetra Tech reaffirms its previous EPS guidance for the fourth quarter fiscal 2014. RCM financial results are expected to have no significant net impact to reported GAAP EPS in the fourth quarter. Tetra Tech will provide its fourth quarter results and fiscal 2015 guidance in its quarterly press release, which is scheduled for November 12, 2014.
    Sep 24, 2014. 07:06 PM | 1 Like Like |Link to Comment
  • A Challenge To All: Find Me A Cheaper-Looking Microcap Than Paul Mueller Company [View article]
    How about MUEL on 3/8/13, the day I noticed it drop to $16 but didn't buy? Argh!
    Sep 15, 2014. 01:49 PM | Likes Like |Link to Comment
  • Bad News Is Good News For Tetra Tech [View article]
    We should hear something in the next few weeks.
    Aug 29, 2014. 03:27 PM | Likes Like |Link to Comment
  • Bad News Is Good News For Tetra Tech [View article]
    Yeah, that is truly irksome.
    Aug 20, 2014. 09:31 AM | Likes Like |Link to Comment
  • Ocean Shore Holding Co. Announces Stock Repurchase and Partial Redemption Of Trust Preferred Securities [View article]
    They should probably file an 8-K on this...
    Aug 11, 2014. 10:02 AM | Likes Like |Link to Comment
  • OSHC Owners Forum [View instapost]
    That PR today really made a splash, huh? For the best, as they keep hoovering up shares down here.
    Aug 5, 2014. 01:12 PM | Likes Like |Link to Comment
  • Bad News Is Good News For Tetra Tech [View article]
    PPP,

    Thanks for the comment. I understand your frustration, given the number of times that TTEK has disappointed over the past 5 years. The company hit a high of $32 back in 2009 (post-Katrina work and stimulus hopes, I believe) and here we are at $25 and change after a number of setbacks. You may be right that nothing has changed and nothing will change unless the Board or an outside activist makes a change at the top. On the managerial front, I suggest that we wait and see what actions are taken to correct the problems in RCM before giving up on TTEK's leadership. An aggressive move to pare this segment would suggest that real change, and not mere talk, is occurring. A meek response would lead me to reconsider my position.

    On the capital allocation front, I would point to the initiation of a dividend, the implementation of a share repurchase plan, and the change in targeted leverage as signs that management is taking shareholder interests seriously. At 67% of 2014E FCF, these returns of capital are not token amounts.
    Aug 5, 2014. 10:23 AM | Likes Like |Link to Comment
  • CBS Exchange Offer - An Uncorrelated 7% Without Proration [View article]
    That worked out fabulously.
    Jul 17, 2014. 10:04 AM | Likes Like |Link to Comment
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121 Comments
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