Assessment DRX announced it has $55M in new orders from customers in Quebec and the US Midwest to construct the steel structure of an industrial-type building that is in the second phase of buildout. The work will be carried out over the next eight months. We view the news as quite positive, and given the stock's cheap valuation (6X forward earnings) and ability to manage costs and grow margins, we are encouraged by this news.
We feel that investors are likely wary of the name due to its small size and concentrated customer base, but we consider a lot of these risks as being priced into its cheap valuation. With the potential for the manufacturing sector to expand, we think this name can do well once it has found a solid price support. (5iResearch)