RE:RE:Aggregates from MexicoAgg,
Concur with your analysis. Do not also forget that this is a cyclical industry and that they are in the first innings of a recovery which could be quite huge, given the fact that the downturn lasted so long. Add to this a potential imbalance in the market : quarries are getting depleted in their markets, and permitting new ones is a very arduous process if not impossible. In fact, their ports/terminals is the equivalent of having a quarry ideally situated with no competitors, or competitor price out because of the freight charges for a truckload of this stuff.
If you consult the value investigator site, Irwin of ABC funds, one of their main investors, has some commentaries on them, backing to their original IPO. Tough to believe that it was one a highflier, trading at more than 13-15 per share based on optimistic analyst reports when they were juste starting to produce. Gee,, here we are, 10 years after, same scenario, but only better as we are now shipping 1 million ton per quarter, LA coming in line and right before the upswing of a cycle instead than at the end of a cycle.
Who knows what kind of valuation PLS can attain should prices and volumes take off at the same time. It could be huge. Much more than 8.00.
Regards,