ENGlobal Corp. (ENG) Given Positive Writeup in See
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ENGlobal Corp., a specialty engineering services firm that focuses on oil and gas automation solutions, subsea control systems, and engineering and construction projects, was recently highlighted in a Seeking Alpha article, touching on how the company’s management team has turned the company back to profitability and staying profitable in spite of the current energy slump. The article indicates that the company is an undervalued micro-cap, given that the energy infrastructure industry is now in high demand, and that ENGlobal represents a high potential for a buyout.
In particular, the article (by Nicholas Bodnar) suggests that ENGlobal “is undervalued on a few different metrics”, giving investors “a great chance to get in at depressed levels”, with a significant long-term return potential. It points out the efforts made to minimize risk, and how ENGlobal management has been investing more into the automation side of the business, seen as a way of reducing the risks associated with profitability. It also points to the company’s prudent balance sheet, calling the chance of insolvency “almost non-existent”.
ENGlobal is about automation solutions and EPCM (Engineering, Procurement, Construction Management) projects, serving all levels of the energy industry, as well as pulp-and-paper, alternative energy, and government. The company offers services in engineering and construction, automation engineering/integration/design, and subsea controls and integration. Over the past two decades, they’ve developed a global reputation for designing state-of-the-art plant automation systems. The company’s driving vision is to become the preferred provider of innovative automation integration services and select EPCM projects to clients around the world.
Careful to differentiate themselves from companies where “quality” is more word than action, ENGlobal feels that they stake their reputation on delivering value-added products and services of the highest level, carefully following ISO-9001 guidelines. Establishing clear objectives at the outset of every project, the company emphasizes that it maintains open lines of communication throughout the duration of every project, strengthening working relationships to better understand and meet the client needs.
The Seeking Alpha article concludes that ENGlobal offers long-term investors an “enormous long-run upside”, with “a potential to make at least a 220% return in 3 years”.
For the complete article, go to http://seekingalpha.com/article/3431716-englo...nergy-play.
For more information on the company, visit www.ENGlobal.com
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