SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: bruwin who wrote (55312)5/12/2015 9:06:44 AM
From: E_K_S1 Recommendation

Recommended By
Ivan Inkling

  Read Replies (2) of 78958
 
Re: Sterling Construction Co. Inc. (STRL) - It's all about their hard asset value

Sterling's construction equipment has a basis of $167,888,000, which includes $16,000,000 of land and buildings. That's $8.85/share in hard asset value just in their company owned machinery and land. The new CEO has a good track record and his interests are aligned w/ the shareholders in that his salary is $1.00/year and 600K shares of stock that vests over then next 36 months.

I have been watching the new contract wins for the last quarter and they continue to book new business. It's a difficult business and management at all levels play a key role to bring profits to the bottom line. I have had investments in other small cap construction companies and almost every quarter I see one time charges. I will give the new CEO a chance to see if he can complete their new projects on time and under budget. He proposes to increase margins by 1% and if he can do that, stock should be much higher.

For me the investment has low downside risk and better than average return in the next 18 months.

FWIW I bought another chunk of stock at $3.41/share to bring my average cost to $3.38/share The portfolio position is now 0.8%. I am looking to sell my shares north of $6.50/share.

Let's see what Q3 looks like and if the new CEO can return this company to profitability.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News