Buddy...you are not understanding anything we say....nor are a whole bunch of you who keep down ramping MYR hard. We know its a horrible business! THATS WHY WE"RE BUYING.
The reason we are buying this stock is precisely because it looks so bad! That is the way many of the most successful investors invest. It's called betting on mean reversion. Buying when something is hated and selling when it's euphoric. As an example A2M at near to $8, fantastic business, but at euphoric valuations - so a screaming sell. And it worked wonders that trade.
MYR is a horrible business very much hated by the market and it has been valued as such. But that doesn't deny the value in the business which is still there. The best contrarian, mean reversion buys are exactly those stocks like MYR. 1B equity value vs. 500M market cap. You do the math.....its absolutely hated and its market cap has been hammered. But it shouldn't be priced at 500M.
So unless you think MYR is going to zero and has a zero value then it's a buy in my book, why? Again - mean reversion. As competitors leave a horrible industry ultimately those that are left become more profitable and vise versa.
I could go on further....but rather I'd refer you to Tobias Carlisle's book - The Acquirers Multiple.
MYR Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
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