- NOW Inc was not a successful investment in recent years for those hoping for the oil industry to recover, and past earnings to mean revert.
- However, this investment is now a net net. If the business survives, it is likely to generate a positive return.
- The company has no debt, and is a leader in its field of distributing products and services to help oil companies do their work.
- Management are competent, experienced and conservative. Execution risk is low.
- The biggest risk is the energy sector continues to shrink, leading to future business volume to be permanently lower. At current prices a substantially lower earning power is expected, and the current price is fully backed by net tangible assets.
For further details see:
NOW Inc: Worth More Dead Than Alive. Net Nets Are Appearing In The USA