Steel Excel - Shell Company Turning Into Profitable Business
- Steel Excel (SXCL) is a holding company / acquisition vehicle owned and managed by an activist value investor with a good track record - Warren Lichtenstein.
- Following Black Hawk acquisition in Dec 2013, operating cashflows are due to increase by 70-80% during 2014. This improvement will be reflected already in Q1 2014 results due in May.
- Conservative sum of parts valuation indicates 25% upside. With earnings boost from Black Hawk operations and ongoing share buybacks, gap between market price and intrinsic value is likely to narrow.