Hello All,
I've been browsing this sub and WSB for awhile and thought I should try to contribute:
I've been following AGX for about a year and watching the stock's slow decline. It first came up on my radar as a Magic Formula stock, for those familiar with that website/book.
Very quick overview:
Argan is a holding company and their largest and most profitable subsidiary is Gemma Power Systems which handles EPC (engineering, procurement, construction) projects for Natural Gas fired power plants. Argan has a GREAT balance sheet with ZERO debt.
The stock has been in a steady decline due to a diminishing backlog of new projects that has reduced earnings and projections -- management has been very honest and straightforward about this. However, I believe the stock has hit a floor and Gemma has been announcing numerous new projects. Also, a recent earnings beat and insider buying has started to add some life back into the stock. I think AGX offers a very good risk/reward proposition at this point for those with a long(er) term mindset.
TL/DR:
* Excellent company with no debt
* Increasing project pipeline
* Insider buying
* Asymmetric Risk/Reward
**This is for educational purposes only. Please don't blindly follow my quick analysis, because it's probably wrong.**
Submitted September 20, 2018 at 08:00AM by MechieMan https://ift.tt/2QLzIB9
