No qualifying author-owned investment thesis was confirmed in this post.
Venture Global is a private company, not a publicly traded stock or ETF.
Score10
Comments8
▶ Full Post Text
What are folks looking at outside these sectors that feel is good value?
Let's limit to profitable companies that are NOT trading at all time highs.
One i am looking at is Venture Global (VG).
They are the #2 player in LNG terminals in the US (behind Cheniere) with a mix of hypergrowth next 5 years (aiming to 2.5x their capacity) and a reasonable pe (11)
Pros:
1) predictable revenue commited against 20 year 'take or pay' contracts. These long term contracts allow them to operate across various economic cycles
2) their modular designs are a competive advantage as allows them to expand capacity quicker and at a lower cost than a Cheniere
3) LNG is expected to have a growth in demand next 5 years due to growth in Asia and Europe's continued needs for a new supply base.
Con:
1) lawsuits from many of their largest cusomers over spot-market sales VG made vs. Fulfill the lower contractee rates when 'operational'