AGX - What Will Argan Do With All Of Their Cash?
Thesis
Argan Inc. (NYSE: AGX) has rebounded over 10% since filing their last quarterly report on 9/05/2018, but is still ridiculously undervalued. Argan is worth over $68, and offers margin of safety of over 45%. With a stockpile of cash, our $68 price target may prove to be conservative.
Highlights:
1) Argan (AGX) trades well below our target of $68. Margins are rebounding to best in class. Argan trades well below their peers averages. If we apply a 7 times normalized EBITDA (the fair EBITDA estimate after taking out extraordinary items