Civeo Corporation is a spin-off the Oil States International.
It is a US accommodation service and multinational corporation. It is a spin-off of Oil States International and a public company listed on the NYSE
by Gorica Gligorijevic
Civeo Corporation is publicly traded on NYSE under the ticker name CVEO. According to the current price, it may never be so cheap. What we think is that this stock could easily be a great opportunity for investing. How does it come? Well, when the stock is cheap as this one is just a small sign of good news can send them flying.
What we are talking about is the Civeo Corporation stock is turnaround stock. It had happened before, this particular stock made 115% profit in 1 month. This stock is ready to give some of the highest returns. How do we know that? Well, as we said just a small sign appeared recently. Investor Carl Icahn bought a 9.9% stake. That is a sign of a turnaround. The most interesting thing with this stock is that you will receive the 4.7% dividend while waiting for a turnaround.
If you buy this stock now it is possible to double its value very soon. This stock can perform very well in 2020 as being an incredible buy.
Market Cap $162.547M
Current price $0.9587
Why invest in Civeo Corporation stock?
Turnaround stock investing is a real source for investors. Hence, when you notice that some stock has a great probability of return within a year.
Civeo ( CVEO) reported third-quarter revenues of $148.2 million, a net income of $4.5 million, and an operating cash flow of $23.6 million.
Civeo Corporation delivered a third-quarter adjusted EBITDA of $36.2 million. It is up 62% compared to the previous year, and also, there is a free cash flow of $20.3 million Also, the reduced leverage ratio from 4.26x to 3.52x on September 30, this year.
The company completed the acquisition of Action Industrial Catering which provides the company’s presence in the Integrated Services and Western Australian markets. Moreover, for the fourth quarter of 2019, Civeo awaits adjusted EBITDA $19.5 million to $23.5 million. For the full of this year, Civeo Corporation is expanding adjusted EBITDA guidance in the range of $98.0 million to $102.0 million. Civeo is reducing its 2019 capital expenditure guidance to a span of $33 million to $37 million.
“We are encouraged by the Company’s achievements this quarter and we will continue to focus on operational execution, revenue diversification, free cash flow generation, deleveraging our balance sheet and winning new work as opportunities present themselves,” said Bradley J. Dodson, Civeo’s President, and Chief Executive Officer.
Civeo Corporation company
Civeo Corporation is the foremost provider of hospitality services. But also has notable market positions in the oil operations in Canadian and the Australian. Civeo gives full solutions for accommodations of workers with long term and temporary lodging and gives food services, full housekeeping, power generation, communications systems, and logistics services. Currently, Civeo Corporation operates a total of 30 lodges in Canada, Australia, and the U.S., with approximately 31,000 rooms.
Why invest in turnaround stocks?
First of all, they may never be cheap again. By investing in turnaround stocks you may score double or triple-digit gains. How? The beaten-down stocks with real value will survive and provide a profit despite the overall market because they are driven by key developments in the company. And, the most important, turnaround stocks can run independently of the markets.
The turnaround stocks may be hidden for the majority of investors. Hence, you must have a focus on several key criteria. The company must have a stable focus on businesses and be able to recognize and drop all profitless ventures. Such a company makes changes in management with successful turnarounds.
In the past, such a company completed a turnaround plan that gave clear, real direction to employees. Also very important to be noticed, the company must have several great shareholders who will support the turnaround attempt. The company has to be a trustworthy brand. All of these are guarantees that stock will have a great turnaround. It’s up to us to recognize the potential and buy on a bargain.
When you notice all these indicators, it means you have got the opportunity to buy a great turnaround stock. It is time to put some of your money into stocks that give excellent value and powerful management. Yes, they are still beaten down but is it fair? This particular stock is ready for a big return.