--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


Orbital files $150M shelf -3

16:37 03-Feb-21


Orbital Energy Group has filed an S-3 to for up to $150M.  If fully used, it would represent in the neighborhood of 25% dilution, even at currently inflated prices. 

In the wake, of the recent solar development win, I regard the price increase in OEG as one of the more sustainable amongst the GRoDTs.  Unfortunately, we got no data on what Orbital's actual revenue will look like, let alone margins.  My guesses at the absolute best-case scenario go like this: $200M of annual revenue at 10% margin would be about 40 cents of annual EPS, which makes for a P/E north of 20.  That's super-rich for a construction company, but not so rich by current irrational market standards, especially if the company could come up with some good news concerning its GasPT technology.  OEG shares have given back about 3% after hours.