market folly

Continuing coverage, we're posting up notes from the Value Investing Congress.  Below are notes and the presentation of Bob Robotti of Robotti & Company Advisors.  His presentation was entitled 'Building an Investment Thesis.'

Calfrac Well Services (CFW)

Robotti follows classic value investing tenets.  His pitch was Calfrac Well Services (CFW) traded on the TSX.

$1.3B EV, oil services, 90% of revenue is from fracking. Says 80-100% upside on stock if natural gas demand remains flat.

Bear case is well known, low gas prices, oversupply of equipment. He gave a long presentation on the impact of cheap gas in the US, which should also help chemical companies.  (This is basically Nancy Lazar at ISI argument, very similar.)

Price target is double the current price, from $24 to $47.  Models revenue up about 53% from here.

Embedded below is Robotti's slideshow presentation from the Value Investing Congress: 




Check out the rest of the hedge fund presentations from the Value Investing Congress.