Member Info for Druckenbon

Informed of a massive dumping by a retail internet community today panicking completely calling it the new covid (they bought the first dip when the conflict began), maybe opportunity maybe not but retail selloff is for sure at this moment.

You *can't replace

The company profile is different now. Long term contracts, huge backlog and offering a service that you can replace even in the case that the oil field were shut down, thing that didn't happen.

They have fixed long term contract and the operator can't broker it because it will cost a lot more to reopen the field rather than keeping the boat assistance there. And we are talking about the worst scenario and it's neutral for GMS.

Well, markets are unpredictable but with long term contracts and one of the lowest capex/opex oil field in the world, all is just noise.

This conflict could end faster than the market was expected. BTC is higher than Friday after failing today.

Tomorrow opec meeting and they may agree in increase the production.

A target price of 35 means for GMS being in 5 EV/EBITDA (which is a low valuation). It means a potencial of 50% upside.

But the interesting part is that it's peers are trading a 7 EV/EBITDA (historical average.

So to be in a fair value for the market the potential is a +90%.

I am not considering a premium for this company despite the good performance of the management.

Maybe after a long run the stock price is resting a little only to gain traction again. Current price is cheap by current multiples so I consider it an asymmetric risk.