Limbach Holdings, Inc. (LMB) research, news, and more from GeoInvesting

Company description

Thu, 18 Aug 2016 14:31:17 GMT

Founded in 1901, Limbach is the 12th largest mechanical systems solutions firm in the United States as determined by Engineering News Record. Limbach provides building infrastructure services, with an expertise in the design, installation and maintenance of HVAC and mechanical, electrical, and plumbing systems for a diversified group of commercial and institutional building owners. Limbach employs more than 1,400 employees in 14 offices throughout the United States. The Company's full life-cycle capabilities, from concept design and engineering through system commissioning and recurring 24/7 service and maintenance, position Limbach as a value-added and essential partner for building owners, construction managers, general contractors and energy service companies.

Research

Tue, 19 Feb 2019 15:48:14 GMT

Limbach Holdings Inc. (NASDAQ:LMB) ($5.55; $42.1M market cap) provides commercial specialty contract services in the United States. On February 14, 2019, we highlighted recent insider purchases, at the bottom of our February 14, 2019 email, by CEO Charlie Bacon, who purchased 25,000 shares at an average price of $5.70, as disclosed in a Form 4. We received an inquiry from one of our members regarding these transactions being part of a pre-established Rule 10b5-1 trading plan:

“:..as I read the filings, I note the following footnote to these purchases:

The transactions reported in this Form 4 were effected pursuant to a pre-established Rule 10b5-1 trading plan.

Consequently, this indicates that the purchases were part of a pre-determined plan with pre-determined prices, dates, amounts, etc.

So, in my own experience, I would tend to discount this type of buying as ‘still positive’ but less indicative that the executive is doing so of their own volition. I welcome your thoughts…”

In short, yes, we think it’s positive, but not as positive as a random purchase, especially in light of some of the problems the company has been having lately.

Research

Wed, 16 May 2018 14:41:38 GMT

Closing Out LMB and Removing From The GeoBargain List

Limbach Holdings Inc. (NASDAQ:LMB) ($12.78; $96.3M market cap) an integrated building systems provider managing all components of mechanical, electrical, plumbing and control systems, reported Q1 2018 results:

Sales of $120.5 million vs $115.2 million in the prior year and in line with analyst estimates of $120.3 million
Non-GAAP net loss of $0.33 vs net loss of $0.19 in the prior year and well below analyst estimates of $0.05.
The company raised its full year revenue guidance range by $10 million to $520 to $540 million.
Fiscal 2018 EBITDA guidance remained unchanged at $20 to $24 million

As we stated in our last LMB update on April 11, 2018, the stock had a strong performance shortly after the inception of our coverage and long position disclosure, but shares just have not done much over the last 15 months, even though they are still up 40%. We are now removing LMB from the GeoBargain list and will look to close out our long position. One thing to take note of is that investors and the company like to compare LMB to its comps, yet the company’s gross margins of 11% are much less when compared to industry competitors’ GM such as NVEE and WLDN whose gross margins are closer to 50% and 40%, respectively. We also have lost some confidence in management’s ability to deliver bottom line growth. Our frustration lies with management’s inconsistent statements regarding non-gaap financials and its lack of clarity with investors on this subject.

Despite the recent misses in EPS estimates, analysts are still calling for $1.04 and $1.40 in EPS for fiscal 2018 and 2019. We will watch to see if these estimates are revised downward given the poor performance this quarter. We do feel that if management can begin to execute and work towards reaching these analyst estimates, long term shareholders could be rewarded. Although it appears the stock is undervalued on 2019 EPS numbers, we think we have better investment opportunities on our plate at this time.

Research

Wed, 11 Apr 2018 15:26:50 GMT

GB Limbach Holdings Inc. (NASDAQ:LMB) ($13.66; $103.0M market cap), an integrated building systems provider managing all components of mechanical, electrical, plumbing and control systems, is showing some revised estimates for 2018 and 2019. Analyst consensus estimates for EPS for fiscal 2018 are $1.04, up from $0.97 and $1.40 for fiscal 2019, up from $1.39.

LMB had a strong performance shortly after the inception of our coverage long position disclosure (in stocks and warrants), but shares just have not done much over the last 14 months. Clear communication with investors has been a bit of a struggle, and the presentation of its financials typically lacks clarity. Although it has also missed a few analyst targets, recent estimates are still encouraging. This is the one infrastructure stock we've been covering that still has not panned out as we hoped.

Research

Tue, 03 Apr 2018 14:48:07 GMT

GB Limbach Holdings Inc. (NASDAQ:LMB) ($12.13; $90.4M market cap), an integrated building systems provider managing all components of mechanical, electrical, plumbing and control systems, reported Q4 2017 results:

Sales of $131.4 million vs $133.7 million in the prior year and above analyst estimates of $118 million
Non-GAAP EPS of $0.30 vs a loss of $0.05 but below analyst estimates of $0.39

Quotes from management:

“All of our field intelligence suggests that the wind is at our backs in terms of non-residential construction demand in the end-markets in which we focus. Recent reports from industry research firms such as FMI have confirmed that view. We are also very excited about our initial success in the Mission Critical sector, with the award of our first large-scale data center project. We were chosen for this project due to our reputation as a premium specialty contractor. Companies owning and operating the latest generation of data centers demand design, engineering and construction excellence, and we are perfectly-positioned to win significant additional business in this growth sector based on our capabilities in these functional areas. I am very excited about our prospects for 2018 and look forward to reporting on our progress throughout the year.”

2018 Guidance:

Full year 2018 revenues to be $510 to $530 million (analyst estimates are for $514 million)
Adjusted EBITDA to be $20 to $24 million (had adj EBITDA of $16.6 million for full year 2017, which was below prior guidance of $18 to $20 million)

We will work on calculating what the 2018 EBITDA guidance infers for EPS.

Research

Wed, 15 Nov 2017 16:52:23 GMT

GB Limbach Holdings Inc. (NASDAQ:LMB) ($13.58; $101.2 m market cap), an integrated building systems provider managing all components of mechanical, electrical, plumbing and control systems, reported Q3 2017 results:

Sales of $121.3 million vs $118.8 million in the prior year and in line with analyst estimates of $120.9 million
Non-GAAP EPS of $0.12 vs non-GAAP loss of $0.12 in the prior year and below analyst estimates of $0.21
Guidance for full year revenue of $460 to $470 million (prior range $460 to $480 million)
Full year EBITDA guidance to be of $18 to $20 million (unchanged, but now to be at low end of range)

Quotes from management:

“Overall, the pipeline of opportunities we are tracking is approximately $3.3 billion, led by healthcare, which accounts for around 25% of that figure. We are also opening an office in downtown Detroit, where we are tracking over $200 million in opportunities, and to better position ourselves for the wins, we are addressing a concern by the decision makers to have a Detroit presence. We will be the only major mechanical contractor in the Detroit city proper and we believe this will dramatically improve our presence. I am also very gratified to note that Limbach was rated #10 in the USA by Engineering New Record's Top 600 firms published on October 23, 2017. We moved up 2 spots from #12 within the mechanical contracting segment. We also moved up to #43 from 50 in the overall Top 600, which rates all specialty contractors in the USA. All of our growth was organic. On the heels of that organic growth, we continue to pursue an aggressive acquisition strategy, led by our new Executive Vice President of M&A, Matt Katz. Our pipeline of acquisition opportunities continues to grow, with several targets meeting our gating criteria."

We will be on the conference call this morning which begins at 9 A.M. ET. We are extremely frustrated that management is inconsistent with statements regarding non-GAAP EPS. In its Q2 release, the company mentioned what EPS would have been had it not been for one time non-recurring audit expenses (adjusted, the number was $0.10, versus $0.05).

Now, in Q3 they don’t talk about what EPS would have been, absent of a $3 million non-cash charge. We are worried that in the short-term, investors will start to bail on LMB given the unclear color on the makeup of non-recurring expenses. On the positive side, it seems that the company is nearing the consummation of an acquisition.

We are going to review the 10-Q thoroughly and go over the non-GAAP calculations once again as there are a bunch of one time items in this quarter.

Research

Tue, 15 Aug 2017 14:34:41 GMT

GB $LMB ($12.76) reported Q2 2017 results:

Sales of $117.8 vs $96.6 million in the prior year and slightly below analyst estimates of $119.8 million
Non-GAAP EPS of $0.10 vs $0.34 in the prior year and ahead of analyst estimates of $0.08
Maintained FY 2017 sales guidance of $460 to $480 million with adjusted EBITDA of $18 to $20 million

Quotes from management:

“The second quarter of 2017 saw Limbach continue growing in excess of the broader non-residential construction market while a sharp uptick in backlog sets the stage for that growth to continue into 2018. Our Construction segment revenues were up 24.4% in the quarter versus last year’s period while our Service segment grew 11.9%. Our overall backlog is now over half a billion dollars, at $513.8 million, representing growth of 23.5% from March 31, 2017. That impressive growth gives us good confidence in achieving our financial objectives for 2017, while also giving us a nice head-start on 2018. We have also realized a 10% growth in margin within our backlog over the same period last year, which will lead to improving gross margin.”

Research

Mon, 17 Jul 2017 15:45:26 GMT

LMB ($12.00) announced partial repurchase of preferred stock, management expects the repurchase to be accretive to net income. Quotes from management:

“We are pleased to continue the process of reducing the Company's cost of capital in a manner that rewards our existing shareholders while also being accretive to Limbach's bottom line. Our ability to redeem a portion of the Preferred Stock at this time using lower-cost senior debt is an indication of our strengthening balance sheet and consistent operating performance. Furthermore, we retain the ability to pursue strategic M&A opportunities and fund long-term growth initiatives.”

Research

Tue, 16 May 2017 15:21:07 GMT

LMB ($12.99) announced Q1 2017 results:

Sales of $115.2 million vs $97.8 million in the prior year and ahead of analyst estimates of $108.3 million
Non-GAAP net loss of $0.02 vs non-GAAP EPS $0.20 in the prior year (using current outstanding share count).
Reaffirmed full year 2017 revenue and adjusted EBITDA guidance of $460 to $480 million and $18 to $20 million respectively.

Quotes from management:

“Through early May, we have secured commitments on new construction projects totaling just over $280 million. This includes approximately $79.4 million of work which was booked into backlog in Q1. The balance of this new work we expect to come into backlog in Q2 through early Q4. This is giving us strong visibility on 2017 and a firming picture for 2018, into 2019."

Although the company reported weak bottom line numbers, management claimed that temporary expenses related to going public negatively impacted the quarter. However, we are taking a deeper look into the company’s margin performance for the quarter. Luckily, management reaffirmed guidance and states they have visibility into 2019.

Research

Tue, 18 Apr 2017 15:13:03 GMT

LMB ($13.62) announced fourth quarter and full year 2016 results: (recently announced 2016 guidance of revenues to be in excess of $407 million and EBITDA to fall within $16 to $17 million)

Full year sales of $447 million vs $331.4 million in the prior year period
Q4 sales of $133.7 million vs $91.7 million in the prior year period
Full year adjusted EBITDA of $16.8 million, a 25.9% increase vs 2015
Working on non-gaap financials, which is not as cut and dry as most companies due to recent SPAC merger.
Backlog of $434.3 million, an increase of 14.9% compared with prior year

Quotes from management:

Our gross margin for the full year was 12.5%, which was about the same as it was in Q3, as we continue to build a large, “showcase” project we have underway which carries a slightly lower gross margin, although it does provide a very meaningful contribution in terms of absolute gross profit dollars. We continue to expect our margins to work higher over time as higher-margin service revenues build along with the completion of this large project. While the initial cost of transitioning to a public company did impact our bottom line profitability in 2016, we exceeded our expectations in terms of top line sales and backlog and have a high percentage of our business booked for 2017.”

Reiterated fiscal 2017 guidance of:

Sales of $460 to $480 million
Adjusted EBITDA of $18 to $20 million

The company will be hosting its year end conference call today at 11AM, we plan on being on the call to see if the Company offers any further insights into fiscal 2017.

Research

Thu, 13 Apr 2017 14:07:44 GMT

LMB ($13.19) updated fiscal 2017 guidance and reiterated its previously announced fiscal 2016 guidance. LMB had filed for an extension to file its year end (2016) results. The Company will announce full results on Monday April 17, 2017 after the market close and hold its conference call the following day. In today’s release, the Company updated its 2017 guidance:

2017 sales to be in the range of $460 to $480 million, prior guidance was $450 to $490
EBITDA guidance to be $18 to $20 million, prior guidance was the same

For fiscal 2016, the company reiterated its previously announced guidance of revenues to be in excess of $407 million and EBITDA to fall within $16 to $17 million.

Research

Mon, 03 Apr 2017 17:02:41 GMT

LMB ($13.93) provided an update on its annual Form 10-K filing status. The company has filed for an extension:

To extend the date for filing its Annual Report on Form 10-K for the year ended December 31, 2016 by 15 days in order to finalize the review of its historical cutoff procedures for accruing job cost expense associated with work in progress as well as selling, general and administrative (SG&A) expenses. Under Limbach’s revenue recognition policy, any adjustments to the timing of job cost expense also impact the timing of revenue recognition. Management is continuing to work diligently with its auditors to complete the Company’s audit.

The Company reiterates prior guidance for its year ended December 31, 2016 for revenues to be in excess of $407 million. The Company expects Adjusted EBITDA* to fall within a range from $16 million to $17 million, and net income (loss) to fall within a range from $(0.5 million) to $0.5 million, based upon information available to the Company as of today. A reconciliation of estimated Adjusted EBITDA to estimated net income (loss) is provided below. Limbach will provide updated guidance for FY 2017 upon issuance of its fourth quarter and year-end financial results.

Investors should note that its prior EBITDA guidance had called for “at least $17 million” on an adjusted basis. It is likely the company is experiencing some extra costs associated with the revenue recognition policy mentioned above. We are disappointed in how management has handled transparency with investors in the Company’s first 9 months as a public company.

Research

Fri, 30 Dec 2016 16:17:00 GMT

LMB ($13.91) - There is a new bullish article by Dane Capital Management titled, “Limbach Remains A High Conviction Idea For 2017”. A key takeaway in our eyes is the long term growth outlook management see’s, a sentiment management has shared with us when we met with them at the Philly Micro Cap conference this past fall. Dane writes:

“Mr. Bacon has indicated that Limbach is looking at transactions of at least $50mn in revenue (unless there's a compelling reason to go smaller) and EBITDA margins likely in excess of Limbach's. We wouldn't be surprised to see Limbach complete M&A that adds $5mn or $10mn or more of EBITDA to the company in 2017. Recently, Mr. Bacon stated that Limbach's plan is to get to $1bn in revenue over the medium term, and $2.1bn in 10 years.

By our estimates, if Limbach can acquire $10mn of EBITDA paying 4x, it will be a $20+ stock next year. The implication of getting to $1bn or $2.1bn is something far bigger. It's an amazing thing what public currency can do for a company where a public/private multiple disparity exists.”

Research

Thu, 22 Dec 2016 16:44:37 GMT

LMB ($13.92) - D.A. Davidson initiated coverage on LMB with a “Buy” rating and $16.50 price target. See our recent coverage here including notes on a recent stock offering which will be accretive to earnings. Comments from the analyst includes:

“Attractive bottom- and top-line growth is ahead over the next two years, says Thielman, noting expanding non-residential building markets combining with internal measures aimed at market share gains and an expansion of the profitable Services platform.”

Research

Wed, 21 Dec 2016 14:00:58 GMT

LMB ($13.65)announced the closing of its public offering. LMB offered 1,780,500 shares of common stock of the Company at a price to the public of $13.50 per share, for gross proceeds of $22,786,839. The Company sold 1,405,500 shares, including 153,907 shares pursuant to the partial exercise of the underwriters’ overallotment option and a selling stockholder sold 375,000 shares. As we stated in our December 16, 2016research note, the company was using the proceeds to pay off all of its outstanding subordinated debt. We calculated that eliminating this debt obligation leads to roughly $0.14 in EPS savings (fully taxed). Today’s comments from management indicate our analysis is on the right page, while they do not give specifics, the company stated:

“We are very pleased to close this offering. Not only will it allow to the Company to repay high-cost subordinated debt, which will have positive net impact on EPS, but it also brings us a number of new, high-quality institutional shareholders,” commented Charlie Bacon, Chief Executive Officer.

Research

Fri, 16 Dec 2016 16:54:22 GMT

LMB ($13.80)announced pricing of public offering at $13.50. The company is offering 1.62 million shares at a price of $13.50. 1.25 million are newly issued shares from the company and selling shareholders are selling 375,000 shares. LMB plans to use the proceeds to repay all amounts outstanding under its subordinated debt, which is reported to be $13.1 million, carrying a cash interest rate of 13% as of Q3 2016. We calculate that eliminating this debt obligation leads to roughly $0.14 in EPS savings (fully taxed).

The stock has pulled back from its highs of $16.20 in anticipation of this offering. We may consider adding trading shares to our core long position, especially if shares fall below the offering price. This scenario is reminiscent of a similar opportunity we wrote about in May 2016 about when BGSF fell 17% to $13.50 after it completed an offering to pay down debt. The stock went on to hit a high of $21.75.

We are in the midst of confirming our calculations as well as working on a new adjusted EV/EBITDA calculation, post-offering.

Research

Mon, 05 Dec 2016 16:40:23 GMT

LMB ($14.10) - On November 30, 2016 LMB filed an S-1. The offering is a mixed shelf filing, shares being offered by the company and from existing shareholders. The number of shares and offering price are still unclear. It seems like in total, the company will be offering around $26 million ($20.5 from Company; $5.3 from selling shareholders). We actually believe the offering could be a net positive for the Company in the end. The Company intends to use the proceeds to pay down its high interest debt (16% subordinated loan). While it is not evident if this could actually be an accretive event, paying down the debt is certainly a good thing, and the offering could also add well-needed liquidity and institutional support.

Research

Tue, 15 Nov 2016 18:30:46 GMT

LMBH ($15.00) announced Q3 2016 results:

Breaking - The company just put out a release stating the approval of its NASDAQ uplisting, affirming verbiage in the 10-Q that stated:

“On November 11, 2016, we received approval to list our common stock on The NASDAQ Capital Market.”

Financial Results:

Sales of $118.8 million vs $82.9 million in the prior year
Non-GAAP EPS of $0.57 vs $0.20 in the prior year (based on our calculation)
Backlog at the end of the third quarter 2016 was $450.1 million, an increase of 39.6% compared with $323.6 million at the same time a year ago.
Guidance:
- For FY 2016, the Company reiterates its previously issued guidance of revenues of at least $407 million and Adjusted EBITDA* of at least $17 million, before public company expenses.
- For FY 2017, the Company is introducing revenue guidance of $450 million - $490 million, excluding any contribution from potential acquisitions. Adjusted EBITDA guidance is $18 million - $20 million.

Margins were off vs the prior year. Managements comments on depressed margins:

“Our third quarter gross margin did slip about a percent versus the same quarter last year due to the impact of a large, “showcase” project we have underway which carries a slightly lower gross margin. That single project accounted for roughly 28% of our construction revenue in the quarter, and we believe will serve as a leading project for us to secure larger wins throughout the entertainment sector in the years ahead.”

Based on company guidance we expect the company to report strong Q4 results.

Research

Wed, 26 Oct 2016 15:23:04 GMT

Looking To Add To Our Core Long In LMBH

Despite shares of LMBH ($14.00) being up nearly 55% since we initiated our long position on August 25th, 2016, we will be looking to add to our long position. Yesterday, we saw LMBH present at the Micro Cap Conference in Philadelphia. Our confidence in management and the Company continues to grow. In our October 11, 2016 email we stated our near term price target was $20.70 based on analyst 2017 fully taxed EPS estimates of $1.38.

Research

Tue, 11 Oct 2016 17:43:27 GMT

Added To Our Long Position In GeoBargain LMBH

Despite the 35% increase since we initiated our long position on August 26, 2016, we have added to our GeoBargain LMBH ($12.37) position. Our confidence continues to grow as analyst EPS estimates now available for 2016 and 2017 come in at $1.13 and $1.38, respectively. We learned that these estimates assume a full tax rate. Assigning a P/E multiple of 15 on fully taxed analyst EPS estimates of $1.38 for 2017 gives us a near term price target of $20.70.

If you have not already, we encourage you to read 2 public bullish articles by Dane Capital

Management, LLC which we feel echo our bullish sentiment on the story.

Limbach: Near-Term Catalysts Should Close Valuation Gap (Oct.7, 2016)
Limbach: Excellent Q2, Major Valuation Disconnect And Upside To Shares (Aug. 25, 2016)

We highlighted a 3rd one, but it is no longer public due to its status as a Seeking Alpha Pro column.

Limbach: 6x EBITDA, Huge Discount Vs. Peers - 64% Near-Term Upside (Aug. 3, 2016)

In our August 25, 2016 email we offered our initial take and our main reasons for optimism. Below we highlight our main takeaways on why our confidence continues to grow:

Strong management team ( Experienced, well respected industry veterans across the board)
Clear visibility (Backlog visibility well into 2018)
Serving a hot industry (Mechanical design,engineering, installation and maintenance)
- There is a major emphasis on energy efficiency in new building construction
- Retro-fitting existing buildings to become more energy efficient is also a major theme
Marquee Customers (Serves marquee names in many sectors, including Healthcare, Sports arenas, Higher education, Entertainment, Transportation etc…)
Offers unique solutions vs competition (Offers off site module building and delivery; One of the few companies that can help design, build, and offer maintenance services)
Analyst estimates (See notes from above)

Dane Capital is a contributor to GeoInvesting. He has also offered bullish commentary on $NTP, which you can read here. Our $NTP coverage is continuing and can be found here. We are long NTP.

Research

Fri, 07 Oct 2016 15:34:19 GMT

LMBH ($11.83) - There’s a bullish article by Dane Capital Management at Seeking Alpha. “Limbach: Near-Term Catalysts Should Close Valuation Gap”

On August 25, 2016 we offered our initial take on LMBH and encouraged you to read two bullish articles by Dane Capital discussing the recent developments and bullish thesis. We stated we would look to establish a position. Via premium tweet later that day we initiated our position when the stock was trading at $8.90.

Research

Thu, 08 Sep 2016 04:00:00 GMT

Information arbitrage opportunity. On September 7, 2016 LMBH presented at the D.A. Davidson Annual Engineering & Construction Conference. We encourage you to listen to the presentation yourself for more color on the LMBH story and specifically its mid-term growth outlook which, to our knowledge, was not stated in any recent release or filing.

CEO Charlie Bacon, stated that LMBH’s mid-term goal is to be a one billion dollar company within the next 4 to 5 years. Current fiscal 2016 revenue guidance of $407 million. The company plans to achieve the billion dollar mark by:

Reaching $600 to $650 million with organic growth
$300 to $350 via geographic expansion/acquisition and expansion of electrical business segment
LMBH expects to enter Texas, the Carolinas, Florida and the north west in the coming years.
Will only consider accretive acquisitions

The Company expects continued gross profit margin improvement which should lead to greater leverage in the bottom line as sales continue to grow. The Company has great visibility into 2017 and believes the supply and demand will remain in their favor for some time. And lastly, management reiterated its plans to uplist to a major exchange as a top priority.

For a full recap of our previous notes on LMBH, go here.

Research

Wed, 31 Aug 2016 15:33:13 GMT

Added To Our Long Position In LMBH ($10.00)

In our August 25, 2016 email we stated we were looking to establish a position in LMBH based on strong Q2 2016 results. We also highlighted two Seeking Alpha articles by Dane Capital that discussed the bullish developments that were taking place at LMBH.

Later that day we initiated our position when the stock was trading at $8.90. In the last several days, share momentum has continued with the stock hitting a new high of $10.19 in yesterday’s trading session. We added to our long position the last several days.

In related news, Craig Hallum initiated coverage with a “Buy” rating and a $17 price target.

Research

Fri, 26 Aug 2016 15:07:30 GMT

Initiated Long Position In LMBH ($9.25)

On August 25, 2016 we offered our initial take on LMBH and encouraged you to read two bullish articles by Dane Capital discussing the recent developments and bullish thesis. We stated we would look to establish a position. We initiated our position early in the trading day yesterday. After opening flat at $8.80, shares eventually broke through $9 to the upside reaching an intraday high of $9.79 before closing at $9.25.

Research

Thu, 25 Aug 2016 19:03:00 GMT

Looking To Establish Position in $LMBH ($8.80)

Limbach Holdings is a preeminent national provider of mechanical design, engineering, installation and maintenance services, especially addressing Heating Ventilation and Air Conditioning (HVAC) needs. On August 16, 2016 we issued a premium tweet stating:

Second quarter 2016 results:

Sales of $96.6 million vs $78.5 million in the prior year
EPS of $0.34 vs $0.09 in the prior year period (results are not taxed and are based on 5.9 million outstanding shares and does not reflect potential dilution from warrants at much higher prices.)

We have dug a little a deeper into Limbach and interviewed management. Our initial take:

Management has a clear understanding of how to execute its growth objectives.
Clear competitive advantage on how it manufactures and delivers its products to customers.
Addressing budding market opportunities that competitors are not
Big name customers
Diversification of customer base and served geographies
We are working on a valuation analysis to take into account the existence of dilutive securities with strikes at higher prices. But we think the stock can push higher in the coming months.
A reputable customer list

We encourage you to read two Seeking Alpha articles written by Dane Capital that discusses bullish developments taking place at LMBH:

Initial article - August 2, 2016
Follow up today - August 25, 2016

Reasons For Tracking

Thu, 25 Aug 2016 04:00:00 GMT

Looking To Establish Position in $LMBH ($8.80)

Second quarter 2016 results:

Sales of $96.6 million vs $78.5 million in the prior year
EPS of $0.34 vs $0.09 in the prior year period (results are not taxed and are based on 5.9 million outstanding shares and does not reflect potential dilution from warrants at much higher prices.)

We have dug a little a deeper into Limbach and interviewed management. Our initial take:

Management has a clear understanding of how to execute its growth objectives.
Clear competitive advantage on how it manufactures and delivers its products to customers.
Addressing budding market opportunities that competitors are not
Big name customers
Diversification of customer base and served geographies
We are working on a valuation analysis to take into account the existence of dilutive securities with strikes at higher prices. But we think the stock can push higher in the coming months.
A reputable customer list

We encourage you to read two Seeking Alpha articles written by Dane Capital that discusses bullish developments taking place at LMBH:

Initial article - August 2, 2016
Follow up today - August 25, 2016