GIFI - Gulf Island Fabrication: Assets Provide A Margin Of Safety
Investment Thesis
In general, I prefer simple investment ideas over more complicated ones. Gulf Island Fabrication (GIFI) fits the bill; the company is currently trading at a 30% discount to its book value and based on recent asset sales I think the company should close that gap in the coming year. While the company's earnings have been poor for multiple years, their last two quarters have been operationally cashflow neutral and recent project commitments have given them a healthy backlog going into 2019. I don't expect GIFI to wow investors with their earnings