few things concern me the most: is it really a good business? the profit margin is very small, steady at 5-6%, significant lower than most of the companies and peers; even when we think about EBIDTA, is approx 10% of revenue. I dont know how to justify all this figures.
another perspective:
with 500m mkt cap, if we add back net debt of 250m: lets assume another company take it over for 500m and repay all the debt, they need to spend $750m; if they immediately stop all the capex, they can generate approx 90m every year. from this perspective, i think GXL is a bit undervalued.
