Gulf Island Fabrication: Assets Provide A Margin Of Safety

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About: Gulf Island Fabrication, Inc. (GIFI)
by: Carleton Hanson
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Carleton Hanson
Long only, value, special situations
Summary

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 .

Investment Thesis

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