Valueguy134 Posted January 15, 2016 Posted January 15, 2016 I've been doing some work on Badger Daylighting and like the company, but just curious if someone with a VIC account would be able to send me the recent short thesis posted on the company. Any help is much appreciated.
KCLarkin Posted May 12, 2017 Posted May 12, 2017 A warning to anyone long BAD: Marc Cohodes just announced that he is short BAD. Given his recent track record (CXRX, HCG), this is likely to be an unpleasant experience. Disclosure: No position.
alpha Posted May 12, 2017 Posted May 12, 2017 Cohodes was on BNN this morning talking about his short on BAD. Stock was down 25%. He said he will be posting more info on his new website: http://turnoutthebadgerdaylight.com , there doesn't seem to be anything posted yet. One thing he mentioned was similar companies were being purchased for 1x sales while BAD was currently trading at 4x sales.
KCLarkin Posted May 12, 2017 Posted May 12, 2017 One thing he mentioned was similar companies were being purchased for 1x sales while BAD was currently trading at 4x sales. I don't know the company well, but the obvious question is why are the margins (and ROE) sustainably high. This seems like it should be a cyclical, commodity, capital intensive business. Sometimes management can overcome a bad business. But with the turnover in management, this seems unlikely.
clutch Posted May 12, 2017 Posted May 12, 2017 I don't know the company well, but the obvious question is why are the margins (and ROE) sustainably high. This seems like it should be a cyclical, commodity, capital intensive business. This was the same impression I got when I looked at this business a couple of years ago. Talking with a couple of civil engineers in the field, they really don't have any preference on which company they use for hydro excavating, and they simply choose whoever that's available and cheapest for the given job. Although Badger's scale could be an advantage in ensuring they'd have a truck available whenever someone calls them...
JayGatsby Posted May 14, 2017 Posted May 14, 2017 You may have seen this already, but here's Mark Cohodes' presentation which was posted overnight: http://turnoutthebadgerdaylight.com/ Bit of color from Zerohedge: http://www.zerohedge.com/news/2017-05-14/marc-cohodes-scourge-home-capital-reveals-his-latest-short
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now