David Einhorn (Trades, Portfolio) is the founder of Greenlight Capital, a $7,653 million’s portfolio hedge fund composed of 43 stocks.
After his first buy on 2014 Q2 and his increase by 73.19% on Q4 (same year), on May 05 2015 he slashed his stake of Civeo Corp (CVEO) by 70.80% getting back now to 3,111,878 shares held with an average price of $12.12/share. He is now holding CVEO with an average loss of 26% (9% of which was accumulated since that sale).
The company operates in active oil, coal, natural gas and iron ore producing regions, including Canada, Australia and the United States and has a market cap of 466.85 million and an enterprise value of 964.47 million.
It has a profitability and growth rated 3 out of 10 with negative returns that are at the lowest levels if compared to the company’s history (ROE -19.40%, ROA -11.02%, ROC -13.46%); these returns are ranked lower than 59% of other companies in the Global Business Services industry.
The stock is trading at a forward P/E of 4.10, P/B of 0.70, P/S of 0.54, and such low ratios are because during the last 12 months the price tanked by 81% and is now 84.68% down from its 52-week high and 93.33% up from its 52-week low. The main drop happened on September 29 of the last year, when the company stated that it would re-domicile to Canada as a corporation rather than convert to a REIT. Shares fell by 52% in a few days.
Growth rate over the last 12 months is negative: revenue dropped by 13%, EBITDA by 101% and earnings per share by 246%.
The company may look attractive to passive investors; it is paying a dividend yield of 5.98% to its shareholders (but without a steady and comfortable growth rate).
During the first quarter of 2015 the company reported operating income of $4.9 million on revenues of $171 million. Its net loss totaled $16,000 or $0.00 per diluted share. Their gross and net debt levels totaled $775 million and $495 million at March 31, 2015, representing a debt to capitalization ratio of approximately 51%.
Cash flow from operations was $49 million, and they invested $411 million in capital expenditures.
For 2015, they are projecting between $75 million and $85 million of capital expenditures, compared to $251 million in 2014.
Some days ago, the company announced that during the third quarter of 2015 will migrate to Canada, after about 99% of its stockholders approved the proposal and Bradley Dodson, president and CEO of the company, during the Q1 2015 results said
Our Canadian segment revenues were down sequentially by $34 million from the fourth quarter of 2014 to $151 million. Adjusted EBITDA decreased from $56 million in the fourth quarter of 2014 to $37.5 million in the first quarter of 2015.
The revenue decrease is primarily due the weaker Canadian dollar, negatively impacting first quarter revenues by $10.8 million; and the closure of the Athabasca lodge, negatively impacting the quarter revenues by $4 million as well as lower occupancy at several other lodges.
