Gulf Island Fabrication operates in a difficult industry and has struggled to achieve profitability in recent years.
The company carries no long-term debt and has almost 40% of its market cap in cash.
Recent sales of property and equipment suggest the company's book value is a reasonable estimate for the value of their assets.
With Gulf Island Fabrication trading at a 30% discount to book value, I believe there is enough of a margin of safety to begin a position .
In general, I prefer simple investment ideas over more complicated ones. Gulf Island Fabrication (GIFI) fits the bill; the company is currently trading at a 30% discount to its book value