Friday, February 19, 2021

Great Lakes Dredge & Dock (GLDD)
A Softer End to Year, But Positive Outlook Intact

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q2020 results softer than expected due to higher costs and downtime/delays. Adjusted EBITDA of $29.4 million was below expectations of $33.5 million and EBITDA margin of 17.1% was below expectations of 17.7% due to higher S,G&A expenses, including severance and relocation costs, and higher maintenance expense caused by unexpected downtime. Good execution on most projects was offset by some weather delays in Florida.


Fine tuning 2021 EBITDA estimate of $150.0 million which is down slightly from 2020 due to a 90 basis point drop in EBITDA margin to 19.7% mainly due to strong outperformance on several projects this year, especially in 1Q2020.  S,G&A expenses are expected to remain elevated in the 8.5% of revenue range due to costs to move to Texas. Admittedly, we are setting the bar at a reasonable level given …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, February 19, 2021

Capstone Turbine (CPST)
Coverage Initiated on Capstone Turbine

Capstone Turbine Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Capstone Turbine is a leading provider of on-site generation and thermal solutions. We believe that microturbines serve an important service for clients seeking to supplement or replace electric utility service. Growth has accelerated in recent quarters following a salesforce realignment. The long-term prospects for the company are also good. Increased environmental consciousness will push customers towards companies like Capstone that offer individualized client solutions that reduce emissions.


Cost cutting should mean top-line growth goes right to the bottom line.  Capstone spent last year working to reduce costs with a goal of moving the company to positive cash flow generation. The company turned cash flow positive in the June quarter before reporting narrow losses in the September and December quarters, as it shifted its focus towards growing revenues. With a better-aligned cost …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, February 18, 2021

Energy Services of America (ESOA)
Increasing Price Target to Reflect Multiple Expansion

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First fiscal 2021 quarter softer than expected due to seasonality and higher labor costs. 1Q2021 (Dec) was positive from a top line perspective, but profitability compressed due to actions taken to increase work force productivity. Total revenue of $32.0 million increased $6.2 million (~24%), and gross profit of $2.8 million increased $0.45 million (~21%). Adjusted EBITDA of $0.3 million dropped from $0.9 million and EBITDA margin of 1.0% was 230 basis points lower. S,G& A expenses, including added incentive comp, increased $1.0 to $3.6 million and dampened profitability.


Moving FY2021 EBITDA to $9.1 million from $10.8 million to reflect quarterly results and a one-time 401(k) retirement fund adjustment this quarter.  The adjustment is driven by an issue triggered by a change in the third-party administrator of the 401(k) program. In order to remedy the error, the Board decided to make the participants whole using the February 9th closing price of $1.92/share and …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, February 16, 2021

Great Lakes Dredge & Dock (GLDD)
Quarterly Call Will Reinforce January NobleCon17 Appearance

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q2020 Results out tomorrow morning and call at 10am EST. Number is 877-377-7553 and ID is 4967097. Our 4Q2020 EBITDA estimate is $33.5 million with gross margin of 21.0%. We will be looking for color in the following areas: 2021 bid market outlook; Tone of bidding activity and visibility of projects; Impact of competition; Margin direction; Update on newbuild Hopper Barge One; Timing of FID and capex on newbuild Hopper Barge Two; Timing of FID and capex on newbuild rock dumper barge; Progress completing $75 million buyback program; Refinancing plan with bonds callable at par in May; and Timing and cost of corporate relocation to Houston.


Quarter call should reinforce positive outlook offered in NobleCon17 presentation in January.  CEO Lasse Petterson and CFO Mark Marinko offered a solid case for GLDD in a presentation in late January. Go to Channelchek: https://www.channelchek.com/news-channel/NobleCon17_Rebroadcast for replay info …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, January 22, 2021

Orion Group Holdings (ORN)
Conference Highlights Positives – New Concrete Awards

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noble Capital Markets’ Seventeenth Annual Small & Microcap Conference presentation reinforced favorable dynamics. CFO Robert Tabb covered all of the bases by highlighting favorable market fundamentals, reviewing the ISG restructuring benefits, discussing the timing and benefits of the ERP program and offering specific details on asset sales. After addressing the financial impact of the Corpus Christi accident and the ERP program benefits, Tabb stated that bidding/booking activity remains solid across the board and indicated that growth-oriented investments are the major strategic goal. Go to channelchek.vercel.app for replay details.


Concrete awards of $27 million announced.  Recent concrete and Marine awards are incremental to 3Q2020 low bids pending. Late yesterday, several concrete awards were announced that total $27 million. The awards includes $11.6 million for construction of a larger tilt-wall distribution center in Central Texas and $15.1 million for five tilt-wall and paving projects; four in Dallas and one in Houston …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Limbach Holdings (LMB) CEO Charlie Bacon and EVP Matthew Katz at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 2021. Following the formal presentation, Noble Capital Markets Senior Research Analyst Joe Gomes joins Charlie and Matthew to moderate a Q&A session. NobleCon 17 Complete Rebroadcast

Tuesday, January 19, 2021

Orion Group Holdings (ORN)
Conference Presentation Should Highlight Favorable Outlook

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Tune into Noble Capital Markets Seventeenth Annual Small & Microcap Investor Conference for an update. ORN management will present live at our annual conference today (January 19th) at 12pm EST (noon). Please see www.channelchek.com for details.


Due to solid execution, we are increasing 2020 EBITDA to $53.7 million from $52.3 million but lowering 2021 EBITDA estimate to $48.7 million from $52.3 million to reflect more conservation tack.  Tough comps but profitability remains solid. Industry fundamentals remain positive despite state level concerns about COVID-19. Recent awards on two Marine projects in Florida of $21 million were …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Join Limbach Holdings (LMB) CEO Charlie Bacon & EVP Matthew Katz at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Charlie and Matthew to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule

Wednesday, January 06, 2021

Energy Services of America (ESOA)
FY2020 Earnings Revised Higher Due to Stimulus Legislation

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fiscal 2020 (September) results were revised upward due to stimulus legislation. The reported net FY2020 loss of $0.039/share was revised upward to net income of $0.123/share in the FY2020 10-K filed yesterday. More clarity on the taxation of PPP loan forgiveness included in the stimulus legislation resulted in the reversal of $2.7 million of the reported tax provision. There was no change to adjusted FY2020 EBITDA of $8.0 million.


Closing of WV Pipeline acquisition adds confidence to FY2021 EBITDA estimate of $10.8 million.  EBITDA growth in the 30% range reflects the strong finish to FY2020, sustained higher profitability due to the shift in the business model and the closing of the WV Pipeline acquisition last week. Forecasted revenue of $122.5 million is a slight 3% improvement from FY2020 revenue of $119.2 million and …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, December 18, 2020

Orion Group Holdings (ORN)
Two Marine Awards for $20 million. Program Sales Initiated

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two Marine projects in Florida awarded for total of $21 million. ORN will demo and remove the existing 40th Avenue NE Bridge in St. Petersburg and replace it with a new dual concrete carriageway. The $10.7 million of work starts in 1Q2021 and runs~10 months. The second project is supporting Brantley Construction Services, LLC, on the replacement of a 550-foot wharf quay wall with a new steel sheet pile bulkhead for NAVFAC Southeast at Naval Station Mayport. The ~$10 million of work starts now and should be done by yearend 2021.


Asset sales on the horizon with potential net proceeds in the $65-$70 million range.  The sale of a ringer barge generated $4.0 million in 3Q2020 and the sale of real estate could raise ~$5.0 million in 4Q2020. Two larger properties are on the block; the Tampa yard could be sold for ~$20.0 million in 1Q2021, and the Houston Ship Channel one might at least a year out …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, December 10, 2020

Great Lakes Dredge & Dock (GLDD)
Can’t Win Them All – Houston Move Creates Some Turnover

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Bids on large project opened yesterday and a competitor bid much lower.  Bids were opened at 2pm CST yesterday by CPRA on the Barataria Basin Ridge and Marsh Creation — Spanish Pass Increment (BA 0203). Weeks Marine submitted the low apparent base bid of $80.8 million, or $42.5 million below GLDD. The work should move forward even though the low base bid was $16.0 million (~25%) above the designer’s estimate. A lost bid is certainly a lost opportunity, but the silver linings are bidding discipline remains intact and some of Weeks’ dredging equipment should be tied up for two years. Moreover, the dredging market outlook remains robust and other projects, including Lake Borgne, are moving forward.


Offshore wind dedicated investment expands fleet renewal program into the $200-$220 million range.  In our view, the most likely fleet renewal program includes the first hopper dredge and the rock dumping barge, while the option on the second hopper dredge new build for $93 million adds optionality. Late last week, GLDD moved forward on long-standing plans to enter the offshore wind construction …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Monday, December 07, 2020

Great Lakes Dredge & Dock (GLDD)
Offshore Wind Plans Drive Expansion of Fleet Renewal

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fleet renewal program likely to include offshore wind dedicated equipment. Design/Engineering work started on rock dumper new build and FID on the $100-$120 million investment is expected by the end of 3Q2021. Late last week, GLDD announced that it is moving forward with the design and development of the first Jones Act inclined fallpipe vessel (rock dumper) for subsea rock installation to serve the developing US offshore wind market. Ulstein Design and Solution is the firm tasked with the design engineering of the state-of-the-art vessel, and delivery is slated in 1Q2024.


Rock dumper barge adds to the existing hopper dredge new build and expands total investment program into the $200-$220 million range.  Option on second hopper dredge new build for $93 million adds optionality …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, November 19, 2020

Great Lakes Dredge & Dock (GLDD)

Largest Award Ever On Horizon

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Largest project ever moving forward in Brownsville. Another big plus for backlog and intermediate term visibility. NextDecade (NEXT) has selected GLDD to improve the Brownsville Ship Channel in conjunction with the Rio Grande LNG project. The contract is the largest project ever for GLDD as it exceeds the Charleston II contract of $213 million. The contract likely exceeds $225 million, and the award will be added to backlog once the Notice to Proceed is received. At this point, work seems likely to start in 2H2021 with a completion timeline in the two year range.


First phase of Port of Brownsville improvements.  The Dredge and Disposal Construction Agreement (DDCA), which will govern the project, complements the engineering, procurement, and construction (EPC) contract awarded to Bechtel Oil, Gas & Chemicals in May 2019. Looking at the NEXT investor deck, the contract appears to include deepening and widening the Brownsville Ship Channel from RIO Grande LNG …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.