Tim Eriksen Posted January 11, 2017 Share Posted January 11, 2017 Another Dividend. Does anyone still hold this? I own it in my fund. Trades below book, less than 5 times earnings. Unclear the net cash position but probably $5 to $10 per share. PE net of cash is 3-4x. Link to comment Share on other sites More sharing options...
agross Posted January 13, 2017 Share Posted January 13, 2017 I am still a shareholder. The dividend announcement was welcomed and the company is still performing. I guess just hang tight, like we have a choice.... Link to comment Share on other sites More sharing options...
Tim Eriksen Posted November 1, 2017 Share Posted November 1, 2017 Another dividend of $1.29 per share announced. Previous dividend six months ago of same amount. Six percent yield. HC2 will release earnings on Nov 8th which will show how DBMG (fka Schuff) did in Q3. Backlog was up nicely as of 6/30/17 to 590 million versus 344 million as of 6/30/16. HC2's June 2017 10-Q stated that shareholder lawsuit trial scheduled for March 2018 regarding legality of tender offer. Trying to reverse tender, which is probably difficult to unwind since it occurred at the end of 2014. Could the court force HC2 to compensate shareholders that tendered and will HC2 possibly buyout remaining shareholders? I don't know. Regardless EPS appears to be between $5 and $7 per share. Little to no debt. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted November 17, 2017 Share Posted November 17, 2017 Management of HC2 is making calls to shareholders trying to convince DBMG (Schuff) shareholders to take $44 per share. What a joke. They sent me a research report by B Riley from Q2 where B Riley details a sum of the parts valuation and ascribes 10x EBITDA to DBMG which would be $145 per share. DBMG should earn $7 in 2018 on $575 million of revenue. Revenue may exceed that since they have an additional $300 million of contracts that have been awarded but not signed. If we get tax reform lowering corporate rates to 20% then earnings would be around $8.75. If Revenue is $625 million they could earn $10 per share assuming tax reform. Who needs liquidity with a valuation this cheap? For HC2 to access the earnings they have to pay dividends. HC2 does have a tax sharing agreement which allows them to access those funds. Link to comment Share on other sites More sharing options...
SnarkyPuppy Posted August 16, 2018 Share Posted August 16, 2018 Does anyone still follow this? Have any recent write-ups? Seems crazy cheap... Link to comment Share on other sites More sharing options...
Tim Eriksen Posted August 16, 2018 Share Posted August 16, 2018 Haven't seen any recent write ups. I still own it. Still illiquid. Still cheap. Margins a bit lower so far this year but earnings are still about $2.82 for the first half. Should do better in the second half of the year. If margins are 18% would earn around $4.75 in the back half of the year. If op margins are only 16% then about $3.50. My understanding is margins decrease a bit as sales get near peak because they use more subcontractors. Book value is about $45 per share. Fairly simple to track results since HC2 reports the construction separately and Schuff (DBMG) is the only company. Lawsuit related to the tender offer by HC2 just keeps dragging along. As I recall a B Riley analyst report on HC2 valued Schuff at 10x EBITDA. Currently trading at just over 3x. Link to comment Share on other sites More sharing options...
BG2008 Posted December 4, 2020 Share Posted December 4, 2020 Haven't seen any recent write ups. I still own it. Still illiquid. Still cheap. Margins a bit lower so far this year but earnings are still about $2.82 for the first half. Should do better in the second half of the year. If margins are 18% would earn around $4.75 in the back half of the year. If op margins are only 16% then about $3.50. My understanding is margins decrease a bit as sales get near peak because they use more subcontractors. Book value is about $45 per share. Fairly simple to track results since HC2 reports the construction separately and Schuff (DBMG) is the only company. Lawsuit related to the tender offer by HC2 just keeps dragging along. As I recall a B Riley analyst report on HC2 valued Schuff at 10x EBITDA. Currently trading at just over 3x. My fund admin told me that we got a nice surprise with a $10,000 for 400 shares of Schuff tender back in 2014. This amounts to about $25.75 per share. I love to just keep the money and I haven't looked at this company for 6 years now. Does anyone know any detail on this? Is it money I gotta give back or was there a court order to award $25.75 to shareholders who tendered back then? Link to comment Share on other sites More sharing options...
Hielko Posted December 4, 2020 Share Posted December 4, 2020 Haven't seen any recent write ups. I still own it. Still illiquid. Still cheap. Margins a bit lower so far this year but earnings are still about $2.82 for the first half. Should do better in the second half of the year. If margins are 18% would earn around $4.75 in the back half of the year. If op margins are only 16% then about $3.50. My understanding is margins decrease a bit as sales get near peak because they use more subcontractors. Book value is about $45 per share. Fairly simple to track results since HC2 reports the construction separately and Schuff (DBMG) is the only company. Lawsuit related to the tender offer by HC2 just keeps dragging along. As I recall a B Riley analyst report on HC2 valued Schuff at 10x EBITDA. Currently trading at just over 3x. My fund admin told me that we got a nice surprise with a $10,000 for 400 shares of Schuff tender back in 2014. This amounts to about $25.75 per share. I love to just keep the money and I haven't looked at this company for 6 years now. Does anyone know any detail on this? Is it money I gotta give back or was there a court order to award $25.75 to shareholders who tendered back then? Yes, company settled in a class action suit. You can keep happily keep the money. Link to comment Share on other sites More sharing options...
Hielko Posted December 4, 2020 Share Posted December 4, 2020 If want to know more, send me a DM, think I still have some documents somewhere lying around about it. Link to comment Share on other sites More sharing options...
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