Brian Grosso
September 06, 2016
Brian Grosso @ Rugged Group LLC
I manage a sub-account and source outside investment managers for a family office with $400mm under management. I am a global, deep value investor and am very open-minded and opportunistic in the hunt for cheap stocks. I passed the CFA Level 2 Exam in June 2018 and plan to finish the program in 2019.

Global Construction Services: Good Cheap Stock

A construction services platform company based in Australia with over a decade of financial history.  Looking at the long-term financials, this company's development becomes clear.  In a determined quest for growth via acquisition, management bit off more than they could chew leading to excess leverage and multiple equity raises to straighten the balance sheet up.  Now Mr. Market is skeptical of management's capital allocation ability and ravenous for a dividend reinstatement.  With the company's just-announced FY16 results, he got his dividend and performance was solid.  Shares have already jumped 20% above my initial entry and I think the momentum could well continue.  Given how cheap shares are at 0.46, intrinsic value could certainly support a further move up.

Loading PDF

More from Brian Grosso
The most important insight of the day
Get the Harvest Daily Digest newsletter.