- The Texas-based company is ideally situated (both geographically and materially) to serve the expanding energy infrastructure demand through its Texas Tubular division.
- It is cheap at just 7.5x forward earnings and has more than 25% of its $77 million market capitalization in net cash.
- In addition to a cheap valuation, Friedman provides a 4.6% dividend yield.
- Given its small-market capitalization, niche product lines and the age of its management team, the company would be an ideal bolt-on acquisition for a larger player.
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