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Argan, Inc. (AGX)

NYSE - NYSE Delayed Price. Currency in USD
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43.93+0.34 (+0.78%)
At close: 4:00PM EDT
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  • E
    Eric
    As of July 31, 2021, cash, cash equivalents and short-term investments totaled $491 million.
    Why they don't do something with this money!?

    MC 708M - EV 220M.
    Free cashflow per year at about :100M
    Yield free cashflow / EV = 45%!

    When they don't do something with this money better to repurchase shares?
  • J
    Joseph
    Like past quarterly reports, Bossellman's commentary is sparse. It's what is not said that bugs me. No mention about the $3 billion in backlog. Is most of this backlog never going to see the light of day? This is a big deal and would represent a big reversal in the prospects of the company. I don't think solar projects will generate comparable revs. Any thought?
  • T
    Tory
    $AGX.V conversation
    Anyone checking out this webinar tomorrow ? Im hoping to learn a bit more about $AGX.v / $WRPSF from Peter Krauth of the silver stock investor

    https://web.cvent.com/event/85a53d75-1696-4647-8211-0b645b91ab9b/summary

    $AGX.v / $WRPSF has been a go to silver play of mine, and its been really cool seeing them brand out into the gold sect as well recently, Silver X aka $AGX.v / $WRPSF is one of the cheapest silver stocks with tonnes of potential so check em out and sign up for the webinar tmr if u want !
  • L
    Luke
    $AGX.V conversation
    $AGX recently announced it has intersected significant intervals of high-grade silver-polymetallic mineralization at the Tangana Mining Unit.

    Assay results received from 2 of the first 4 drill holes of the previously announced 25,000 metre drill programs, confirmed the presence of easily accessible, contiguous, high-grade, silver-polymetallic mineralization at Tangana 1.

    Several drill holes targeted vein extensions below past producing underground stopes at Tangana 1 and results show the continuity of the open-ended silver-polymetallic mineralized structure.

    Drilling will continue to expand the extent of known open-ended mineralization at the Tangana Mining Unit.
    Solid results so far, excited to see the rest as silver and gold begin to bounce back.

    https://www.accesswire.com/660612/Silver-X-Intersects-92813-GT-AgEq-Over-138-Metres-and-63171-GT-AgEq-Over-092-Metres-in-Resource-Expansion-Initial-Drilling-at-Tangana-1
    **NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES** - Four holes have recently been completed for 1,091 metres in the ongoing resource expansion drill campaign at Tangana - Final assay results have b
    **NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES** - Four holes have recently been completed for 1,091 metres in the ongoing resource expansion drill campaign at Tangana - Final assay results have b
    www.accesswire.com
  • L
    Luke
    $AGX.V conversation
    Been following $AGX , my favourite cheap silver pick, for a little while now and have continued to be impressed with their progress in Peru.

    They just recently discovered another 5 potentially economically mineralized veins at the Tangana Mining Unit. Meaning, in total, the targeted veins identified within the Tangana vein field cover more than 11 kilometres in combined length.

    I found this article that breaks down $AGX and their unique position in Peru, touches on

    - Near-term production and resource definition drilling at Nueva Recuperada
    - Merger with ORO X
    - Leadership team
    - Etc.

    Lots to love from these guys, IMO not one to miss.

    https://financialpost.com/business-trends/meet-perus-next-significant-silver-producer-silver-x-mining
  • j
    jerome
    $AGX.V conversation
    $AGX released some new drill results yesterday, and they're looking pretty solid.

    - 4 holes have been completed at Tangana 1. Some highlights are extremely impressive
    - 928.13g/t AgEq over 1.38 metre interval
    - 631.71g/t AgEq over 0.92 metre interval
    - The first 1,091m in the 25,000 program has been completed. Only 3 of the 4 drill results have received a final assay.
    - 9,700 metres are aimed at expanding knowledge on and upgrading the quality of the Tangana inferred resource.

    Pretty good numbers at the beginning of the campaign. As they drill more, I expect some more great results to come.
  • J
    Joseph
    I'm hoping the AI bots are reading these promotional posts for "AGX.V." Maybe we can get an accidental pop that way. :)
  • J
    Jordan
    $AGX.V conversation
    My favourite thing about $AGX is that it's in PRODUCTION! Recent news release updated on their progress this year.

    - Completed a 4,000m infill drill program at their Tangana Mine (4.8M tonnes of inferred resource grading 116g/t Ag)
    - Maria Luz has reported an amazing 496g/t Ag grade in 195k tonnes of inferred resources
    - Update on revenue: $6.5M YTD in concentrate sales! Rarely any other junior miners can produce this early on; as production ramps up, I can only expect the revenue numbers to jump higher over the last half of this year.
    - More revenue generated = more money going towards development, and less money is taken out in loans, financing, and debt

    So with $6.5M in YTD sales and expanding production capabilities I can only expect even more revenue growth for the last half of the year. All I can say is that this is extremely undervalued at these levels.
  • J
    Joseph
    This might be an opportunistic level to buy more shares of Argan.
    The closer the stick gets to $30, the more and more margin of safety you get as the company has $30/share in cash with no debt. Compelling risk/reward setup.
  • L
    Luke
    $AGX.V conversation
    Found this great interview with the CEO of $AGX Jose Garcia.

    Touches on

    - Quick breakdown of $AGX
    - Merger with Latitude Silver
    - Nueva Recuperada silver district
    - Both projects in the district
    - Etc.

    Great to hear from the CEO about some recent news, continue to be impressed with their moves in Peru.

    https://www.youtube.com/watch?v=QuAbm_dYIaY
    Silver X Mining to 'very quickly' expand its resource at at its Nueva Recuperada project in Peru
    www.youtube.com
  • J
    Joseph
    Maybe we should get the guys pumping AGX.V on this discussion board to switch to AGX. Argan could use a little shameless promotion. Ha!
  • M
    Matty
    $AGX.V conversation
    $AGX resumed trading last Monday after a successful merger! Their processing facility is being ramped up to produce 2.3M oz of silver/yr by the end of next year. Led by a highly experienced leadership team with over $3.2B of shareholder value created by the team over the last 13 years, their lead advisor Paul Matysek, has sold 5 publicly listed exploration and development companies totaling over $2B. They have 73,000m of drilling planned, a tight share structure with strong insider support, and $12.2M in cash to fund development and exploration plans.
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • J
    Joseph
    As a value investor, I've found that sometimes it takes longer than you want for a thesis to play out. However, I've noticed that around the time I begin to doubt my conviction or get fatigued by the delay, the inflection point happens. The point is, I'm buying heavily now at these levels.

    Here's something to consider: the low for this stock was $29.91. That occurred in March when the world was ending. Today, AGX has $28 of CASH per share. So you would have been pay a buck for all future income streams. So, I feel comfortable penciling in $30 as the max draw down on the stock.

    If you back out the cash, you're now paying about $18/share for the business. I think the business will easily book between $2.00 - $3.00/share of Net Income for the next few years....even if they do not grow the backlog. Hopefully, we'll get some positive news regarding new projects. In the meantime, we'll be paid to wait.

    I'm allocating cash to average down into another 6,000 shares starting today.
  • J
    Joseph
    I like to invest in cash heavy, simple balance sheets. This strategy hasn't been optimal lately, but I'll stick to it.

    When I think about the operations of Argan, I put it into a category I call "ESG adapters." Loosely stated, these are companies who are having to shift their strategy or product mix to meet the market/policy demands around ESG. In Agran's case, they are a best-in-class EPC firm who will have to shift into green construction projects, while continuing to operate their traditional gas-fired business. I firmly believe they can do this.

    There are other companies I hold that are working through the same issue:

    Calm-Maine (CALM): shifting from caged egg production to cage-free,
    Altria (MO): shifting customers from smoking to non-combustibles,
    Exxon (XOM): building renewables alongside hydrocarbons

    The key is to pivot while continuing to dominate your traditional market. This is tricky and requires patience.
  • F
    Frank
    AGX beats on revenue ($116.459mm v $101.600mm) and EPS ($2.07 v $0.34). Cash is still strong and report says that they are expecting to start work on another $1.5 bln in projects in 2019. TTM EPS gives it a 10 P/E. TTM EPS x-cash gives it a 5 P/E. Expecting growth and higher prices!
  • J
    Joseph
    The Chickahominy project got approval to proceed from the Virginia DEQ. Final document in link.
    I'm not familiar with the process, but isn't this the main hurdle to overcome? Can we pencil in another ~$500 MM in backlog at this point. Or is this project still at major risk?

    https://www.deq.virginia.gov/Portals/0/DEQ/Air/Chickahominy_Power_Plant/Documents/52610_Chickahominy_Power_Station_final_issued_permit.pdf
  • J
    Joseph
    I'm back amigos....30 day period no the sidelines is complete.
    How're we feeling about AGX these days? We've made it back to pre-covid levels on the stock. YOY revenues ought to be impressive this quarter.
    Unless there's been serious impairment to the backlog, I'm still bullish.
    Side note: Saw a ton of volume earlier in the week. Can AGX repurchase it's shares leading into the earnings week?
  • M
    Matt
    Does anyone here see any threat to this stock from Coronavirus? Apart from the risk of short term construction delays, which I think are unlikely, I don’t see a scenario where the current project backlog and financial performance are affected by the same forces that are driving the market selloff. And I certainly don’t think it affects their ability to pick up new contracts longer term. Thoughts?
  • F
    Frank
    I am wondering if there is any color on AGX's upward daily price movement? The market is down 300 points today and AGX is up 0.46. Was there tax loss selling in December? Does anyone think that some of those sellers are getting back in now that the 30 day period is ending? Volume starts low but gets heavy later in the day. Are there any announcements coming from AGX? Either way I like the price action in a mixed market.
  • A
    Andy
    Beautiful. Huge beat by Argan. The company was expected to post net income of $0.40 per share for Q2. AGX posted the Q2 results after the close of the market today. They brought in more than $16 million. This comes to $1.08 per share. They beat analysts’ estimate soundly, posting 270% of the consensus analyst estimate. This is a HUGE beat. The company has higher bookings and has hugely beaten expectations. AGX is likely headed to over $50 per share this year.