LMB - Limbach - You Pay For The Construction Business And Get The Service Business At A Considerable Bargain
- By consolidating regional markets, LMB can secure higher margins by reducing competitive bids.
- Insiders are buying and the CEO has skin in the game.
- The outlook for the E&C industry is strong supported by the Infrastructure Investment and Jobs Ac.
- Based on the economics of each segment, I valued the construction segment at $6 per share and the service segment at $15 per share.
- By buying the stock at this levels, you are paying 6x for the construction business and getting the service business for 10% its value. Tha is a material margin of safety.
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Limbach - You Pay For The Construction Business And Get The Service Business At A Considerable Bargain