Kaneb Services XNR
August 29, 2000 - 1:39am EST by
jon17
2000 2001
Price: 1.40 EPS 1.92
Shares Out. (in M): 31 P/E
Market Cap (in $M): 0 P/FCF
Net Debt (in $M): 205 EBIT 0 0
TEV (in $M): 0 TEV/EBIT

Sign up for free guest access to view investment idea with a 45 days delay.

 

Description

My five year target for this stock is $39, a more realistic and nearer term target is $6, which these shares mustered in April. Kaneb Services is an oil industry services provider and pipeline operator. They have pipeline assets in 25 states and the UK. Kaneb seeks to capitalize on its pipeline rights of way, building information technology infrastructure, as did Williams Telecommunications before them.

Kaneb's earnings continue to rise, returning 77% on equity. Relatively heavy debt load reduces this to 11% return on assets. Current valuation and a beta of .23 severely limits the downside risk. The only insider activity has been insignificant on the buy side.

Catalyst

These shares lack any analyst following. The company is beginning to actively pursue additional investors. These shares appear to be sleepers poised to rise as soon as they are noticed.
    show   sort by    
      Back to top