[This thesis is a reconstruction of what I was thinking at the time.]
Date: Apr. 29, 2024
I look at this idea as a clone of LPX. I think it's hard to lose money if you hold through a cycle.
Net income. Cyclicality typically turns people off if they want quick returns.Impressive net margins for a commodity provider. Transportation services are virtually undifferentiated in my
view. So they are doing something unusually effective to keep costs low.
125M in cash
Roughly the same amount of debt
Suppressed demand due to supply glut after the 2021 supply-chain shortage (temporary, in my view)
Not exactly an attractive business model for new entrants, limited competition
