$14m contract for a $23m mkt cap company on a recovery post...

$14m contract for a $23m mkt cap company on a recovery post covid and in high oil price scenario. Got to be worth double IMO"

Good call.
And with ~$8m of Net Cash, how does "$14m contract for a $15m EV company" sound?


Of course, March 2023 delivery is some time away, so there's obviously going to be a big working capital investment needed. But with no debt and with the last-reported Current Ratio over 2.1 times, there is ample balance sheet wiggle room to take on the work (and more work, even, if it comes).

These guys have been to Hades and back over the past several years and that they are still standing when hordes of other oil and gas service companies went teets-up, is a statement in itself (even if it meant they had to sell off some of the crown jewels to stay afloat).

Huge operating leverage here and one presumes that they've priced the job right to account for all the manufacturing inflationary pressures. Heck, MCE's customers are making so much money these days that those customers would surely not haggle over pricing terms, especially as there are probably not too many other places to go shopping for buoyancy risers these days.

The past 4 or 5 horror years for the oil & gas service space is the very factor which is the cause of the upcoming years of decidedly health business conditions.


[I was going write, "... the upcoming decidedly buoyant business conditions" but felt the pun would be laboured.]

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