Orion Group Holdings: The Perfect Activist Target

Summary

  • Orion Group has guided the Street to roughly $35 million in FY 2022 Adj. EBITDA. The stock is trading at less than 2X EV/ pro-forma FY 2022 Adj. EBITDA.
  • The company has two commercial real estate properties under contract that should fetch $35 million of net proceeds, should the deals get finalized.
  • The company's Marine segment is valuable and has a great backlog. Its Concrete segment should be sold, even at a low price, as it has destroyed so much equity value.
  • This idea was discussed in more depth with members of my private investing community, Second Wind Capital . Learn More »
Business for sale - For sale sign

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Before we get started, the last time I used the word activist in a public Seeking Alpha article title was back on November 4, 2021, when I wrote up MoneyGram (MGI). At the time of publication, shares of MoneyGram where trading at only $5.20 per share. Incidentally, the company

Second Wind Capital is a value oriented investment service with a strong recent track record of exceptional outperformance. The focus is mostly small cap value, but opportunistic and open minded towards special situations. In 2020, the total return of the portfolio was +93%. In 2021, the total return of the portfolio was +55%. 

This article was written by

Courage & Conviction has been investing for over twenty years and has spent five years working as a buy-side analyst within a $45 billion investment-grade bond department, 3.5 years as an energy analyst, in addition to various other corporate finance roles. He has been a full time investor and author since 2020.

He leads the investing group Second Wind Capital, providing in-depth analysis on under-the-radar smallcap value ideas. He shares his real-money portfolio and does research based on fundamentals, synthesizing industry ecosystems and regularly interviewing management teams. He teaches community members to embrace volatility and exercise patience to drive alpha creation.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ORN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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