AGX - Argan Inc.: Disproportionate Upside
Opportunity
Argan, Inc. (AGX) is trading at a dirt-cheap valuation due to concerns over the company's backlog, and its ability to find new work. The energy EPC industry is facing some short-term pressures, but looks attractive with a long-term time horizon. The future for Argan is uncertain, and investors (who are people too) hate uncertainty. This appears to be a classic time-arbitrage type situation in which investors who are able to be patient, and possibly endure short-term under-performance, will profit off of those who need to chase performance in the short term.