RE:RE:RE:Tides are Turning- CFW TO THE MOON I think TCW is a much better company and managed a lot better than CFW, earnings and profitability show that. But when we are talking undervalued , CFW is significantly more undervalued for the reasons below.
- Look at CFW balance sheet and total value of assets. Significantly higher than current market cap.
-When CFW went through the re-finance at the end of 2020 all previous shareholders got screwed , but they still eliminated 400-500 million in debt through that and cleaned up the balance sheet a lot regarding less debt.
-Since the re-finance the stock price was relatively stuck , likely due to ongoing legal challenges from Wilks, recently they were announced unsuccessful in ALL court challenges.
- Look at market cap history on ycharts in contrast to oil prices. In 2018 market cap nearly touched 1 billion, and that was with massive debt. There is significantly less debt, oil prices are higher , we are potentially entering a 3 year super cycle for service companies if commodity prices hold, rig and frack crews are rising weekly. We are entering a energy shortage "crisis" , politically motivated or not , we are potentially going to see the biggest spike in drilling and fracking in a decade next year . Market cap is 200 million for CFW, TCW is at 800 million.
-IMO the Bloomberg analyst last week summarized CFW and TCW perfectly.
Do I see CFW as a good long term investment, not at all. Do I see it as a potentially massive gain opportunity as it corrects back to FMV of $10+ , absolutely.
All just my opinion based on my DD. GLTA