Shawcor is worth >$25 in my opinionI think people are really missing the upside here. The pipeline business is up for sale... if you go through the announced pipeline contracts only (many more are not announced) and use management's public comments about upwards of 20% EBITDA margins on the pipeline business you get to $140 million in segment EBITDA.
Again, according to management, in the worst of times, this segment is break even now. According to many offshore pipeline CEO's we are in the first inning of a multi-year bull market for offshore.
For a large offshore pipelines company, think of the margins you would save buy just owning Shawcors Pipeline business and vertically integrating.
What would a company pay for such a segment? 3x contracted EBITDA? 4x?? thats $400 to $600 million for the pipeline business alone, or $10 a share in cash. With Goldman Sachs running the process, I don't expect peanuts or a quickl sell out. They spent years right sizing this segment.
I wont sell below $20, and probably closer to $25 given the fair value of the I believe the remaining segments are worth.