RE:RE:Macro or HNL?I would have to agree that it is Macro for the long term for reasons outlined by Beckysboss as well as the sheer magnitude of the contract size compared to the camp work.
When it comes to valuation a small amount of math goes a long way:
| ($'s in millions) | | |
| Anticipated Contract Value | | $900 |
| JV Interest | | 40% |
| Macro $ Value interest in JV | | 360 |
| Expected Project Margin | | 12% |
| Forecast Project Net Income | | 43 |
| | | |
| Current Market Cap | | 90 |
| Implied P/E Ratio | | 2.08x |
Even if the math is off by a bit on either side, it is obvious that this deal is transformational to the company given the current market capitalization. Furthermore, this does not factor in any of the other projects that they are likely to win nor the MSA work the company has.
If anyone ever tries to talk to you about the efficiency of the market, just remember the curious case of Macro Enterprises.