James RifeTidewater Midstream and Infrastructure LtdTWM.TOTOP PICKAug 09, 2016

Frustrating the last year. In 2023, they were spinning off assets and paying down debt, which was good, but the new CEO has since been building new projects, triggering a sell-off. Meanwhile, they can't sell their renewable assets because US companies are offloading their carbon credits here in Canada. Tons of uncertainty and debt with TWM.

Turmoil here over concerns that their renewable diesel facility is working well or not. That's the key to this company. They are debt free. The CEO exited. He's in a wait and see mode, on pins and needles.

Owns shares in portfolio with strong assets. Also owns 70% of renewable diesel assets. Lots of cash from recent asset sale. Strong balance sheet. Recent departure of CEO a surprise - questions on change. Strategy going forward unclear. Would hold shares if already own. Not buying new shares.  

He owned this for 6 years, exiting when the last CEO left. They just cut their dividend. He doesn't follow the stock now.

Owns shares in company. Debt free now with good dividend. Strong management team. Recent entry into bio fuel has opportunities. Will continue to own shares. 

Underperformer. New deal with ALA is great for shareholders; de-levers and unlocks some value. Renewables arm, of which it owns 70%, is coming online to drive cashflow. Better days ahead. Earnings report in next week or so.

They owned it but sold. It never really gained traction. The CEO left and the company divested some of its assets including Alta Gas. Instead of this company consider large cap infrastructure companies that have sold off with rising rates.

Frustrating performance, a function of market cap size and what investors are looking for right now (larger cap). Management continues to execute. Big ownership of LCFS, which will eventually provide tailwinds.

Company has found its footing with new management.
Recent asset sale to Altagas was favorable.
Tidewater Renewables will be a catalyst to further growth.
Will continue to own shares.

(A Top Pick Jun 01/22, Down 32%)

Challenging year for the company.
Renewable business faced hurdles throughout the year. 
Does not own shares anymore.
Waiting for business to improve before buying (LNG prospects etc.).

Stock's worth around $2. Affected by oil and gas prices lower than last year. Need booming energy prices to get things moving. Renewable diesel plant is great, but scale is quite small, minimal impact on profitability.

He sold their holdings in January after the CEO left abruptly in December. They are experiencing cost over-runs on a big project.

Very cheap, especially relative to peers. More expensive when you take debt into account for the size of its market cap. Issues executing. Debt's come down a lot. Upside if they can continue to grow the business. Yield is around 4%.

It is at a good entry point but is high risk. The renewable component had a big cost over-run. The new CEO is trying to re-work the assets. Tidewater Renewable Diesel is a very good asset but it still has to get the refinery working.

Recent earnings: 
EPS was a loss of 7c versus an expected gain of 3.2c. EBITDA did increase 12%, though. 
Cash flow per share increased 18%. 
Debt remains high at 2.9X EBITDA, though just within the company's targetted range. 
A couple of brokers lowered target prices on the results. 
While a miss is a miss, the reaction to us seems a bit harsh, based on the fundamentals. 
Unlock Premium - Try 5i Free