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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (75786)	6/21/2024 6:44:44 PM
From: Paul Senior	2 Recommendations Recommended By Harshu Vyas S. maltophilia Read Replies (1) \| Respond to of 78774

Seem to be a dearth of value stocks recently. I've not seen anything new here or elsewhere that I'm willing enter into - even for a small tracking position. I'm not willing to commit much to the positions I already have. Only just a little to some positions that have fallen. Recently that's been SPHR, BBDC, CRMT, DLO, JACK, KSS, CPSS, DBI, NWN, some coal stocks. FMC reentered with a tracking few shares.

To: Madharry who wrote (75786)	6/21/2024 7:26:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78774

I have been scanning many different REITs that have a low Price/Cash Flow (12x is a good value start), those that pay 6% div or higher and have undervalued assets (excluding office buildings). Came up with a handful I am buying but only tracking positions as I continue to research their properties, locations, AFFO & FFO, any with JV partners or Private Equity interest and/or new capital projects. The 'theme' is undervalued assets that can be upgraded w/ new capital so rents can be increased. You have to follow the money, who the equity partners are and this is where AI deep dives come into play. ----------------------------------------------------------- Not sure any of the value investors willing to do the work when you can make years of gains owning the Mag-5 high tech. This is one I have owned for years that came up in my screen: Omega Healthcare ( OHI, Financial) closed in the green for the seventh consecutive day, gaining nearly 3% over the last six trading sessions. The REIT closed at $33.01, just below its 52-week high of $34.77, and has gained 7.7% in the past year. Analysts have given the stock a "Buy" rating, with strong momentum and valuation prospects. Others REITs on my list: BFS,UHT, ADC,KIM,AHH Actual buys today in BFS, they do grocery strip malls in DC & Baltimore; 8.48x Price/Cash Flow; 6.476% dividend, MAA only 4.12% div Price/Cash Flow 14.66x a bit higher that I like so have modest buys lower at/near 12x Price/cash flow; company has been buying up projects in need of capital at a discount so future FFO s/d be growing (typically 2 years out). KIM 5.57% div yield Price/Cash Flow 10x still researching as this meets the criteria Some of the candidate companies just are too small less than $1 Billion market cap. Have No Interest in mREITs (mortgage reits) --------------------------------------------------------------------------------------------- Propetro Holding Corp (PUMP) Did start a small tracking position in this oilfield service company. They just signed a contract w/ XOM to use their fracking technology in the Permian Basin. As a result their FCF will increase substantially in the next 3 years (also be more predictable). DCF model says fair value at $13/share (so over 50% undervalued). what is the relationship and/or partnership with XOM and what are those services and the value of contracts out into the future? Key Details of the ProPetro-ExxonMobil Partnership ProPetro signed a three-year Hydraulic Fracturing Services Agreement with ExxonMobil to deliver electric hydraulic fracturing services in the Permian Basin. The agreement includes the deployment of two FORCE^SM electric hydraulic fracturing fleets, along with ProPetro's wireline and pumpdown services, in the first half of 2024. There is an option for a third FORCE^SM electric fleet with wireline and pumpdown services to commence operations in early 2025. The services will be delivered over a three-year term with provisions including performance incentives. ProPetro CEO Sam Sledge highlighted this as a "key strategic step" to strengthen their longstanding relationship with ExxonMobil, emphasizing their collaboration to deliver innovative, cost-effective, and more environmentally friendly energy service solutions. While the exact value of the contract is not disclosed, this multi-year agreement represents a significant partnership between ProPetro and ExxonMobil, with ProPetro providing its electric hydraulic fracturing, wireline, and pumpdown services to support ExxonMobil's operations in the Permian Basin.The search results do not mention any other specific contracts or partnerships between ProPetro and ExxonMobil beyond this electric fracturing services agreement. ----------------------------------------------------------------------------- Earnings and FCF Expectations from XOM Deal ProPetro's management anticipates the ExxonMobil agreement to provide electric hydraulic fracturing services will increase their 2024 Adjusted EBITDA expectations by approximately $10 million. They expect to convert 80-90% of that incremental Adjusted EBITDA into free cash flow from the XOM deal. This highlights ProPetro's focus on maximizing free cash flow generation from strategic growth opportunities like the XOM contract. ProPetro's Value Proposition The XOM deal involves deploying ProPetro's FORCE^SM electric hydraulic fracturing fleets, which offer premium value through increased operational efficiency, lower emissions, and reduced completion costs for customers. ProPetro is strategically transitioning to next-generation equipment like the electric fleets, providing differentiated service quality to customers. Their CEO highlighted flexibility and a customer-focused approach in contract negotiations as a key value proposition. The acquisition of Par Five expands ProPetro's cementing services capabilities in the Permian Basin, complementing their hydraulic fracturing and wireline businesses. Analyst Expectations In Q1 2024, ProPetro's revenue of $406 million surpassed analyst estimates of $392.12 million. Their earnings per share of $0.18 significantly exceeded the estimated $0.05, driven by higher activity levels and pricing stability. Analysts likely have positive expectations given ProPetro's strong Q1 results, strategic initiatives like the XOM deal, free cash flow focus, and shareholder returns through buybacks. So in summary, management expects the XOM electric fracturing deal to boost 2024 EBITDA and free cash flow, reinforcing ProPetro's value proposition of next-gen technology, operational excellence and financial discipline. Analysts seem optimistic about ProPetro capitalizing on strategic opportunities while delivering robust profitability ------------------------------------------------------------------------------------------ Seems like lots of Value Ideas if you do the work. Not sure SI really provides the value ideas anymore especially with the analysis and expected valuation. FWIW, TOS platform does offer a pretty powerful stock scanning/screen module; combined w/ AI analysis one can come up w/ some pretty good value candidates (based on analyst articles, financials and even specific capital projects under review and/or in process).