RE:LNG Canada Contracts Begin AwardingGreat news, some companies are succeeding and perhaps thriving from the recovering oil and gas sector! The last contract E announced was the $9.1M service contract way back in Jan '18. Since then investors have heard but excuses of delayed projects etc etc and contracts awarded to other companies. Don't investors deserve an update on this contract as $9.1M from one customer must represent a material portion of 2018 revenues! However, all we hear are paid press releases about drying grain and tracking equipment. Responsible for my own due diligence I contacted another large (much larger) company that rents” specialized equipment" and enquired about how they track their assets. Due to the number of variables ranging from weather to very specific steps to starting and running equipment they were adamant that relying on tracking assets remotely has very limited value and will not revolutionize the equipment rental industry.
Look at the evolution of Enterprise, ten years ago they were a pipeline operation, five years ago they were predominantly an infrastructure play, currently they are a “specialized equipment” rental company. Enterprise reports the stock price is trading at a huge discount vs both book value and break up value. Perhaps it isn’t just investors and analysts that are confused.