Mammoth Energy (NAS:TUSK) — mrkt cap $146mm; Price $3.03; EV/EBITDA NA
MORE RESEARCH NEEDED. Mammoth Energy Services provides infrastructure solutions, including electric utility construction and oilfield services, supporting energy production and transmission. The company recently received a $160 million litigation payment from Puerto Rico, making it a net-net. At the same time, leadership has shifted, with the CEO resigning and the VP of Corporate Development stepping in. The setup looks promising—industry tailwinds and a stock trading below cash create a compelling opportunity. However, TUSK has lost money for the past five years, and its cash could be squandered through poor acquisitions or ongoing losses. We’ll be analyzing the new CEO’s strategy and planned changes.
Netlist (NAS:NLST) — mrkt cap $194mm; Price $.71; EV/EBITDA NA
PASS. Netlist provides high-performance semiconductor solutions for memory and storage. The company is embroiled in multiple patent lawsuits against Samsung and Micron over alleged infringements of its memory IP. Recently, it secured a $300 million damages award against Samsung, about 1.5x NLST’s current market cap. However, the market is heavily discounting this outcome, expecting appeals to either overturn or remand the case. Our initial interest stemmed from Netlist’s IP in high-bandwidth memory (HBM), a sector gaining attention due to AI-driven demand, but its actual exposure to HBM is limited. We initially thought a settlement was more likely, but given the unpredictable nature of litigation and the significant discretion judges have—often leading to widely varying rulings—we are passing on the name.
Matrix Services (NAS:MTRX) — mrkt cap $385mm; Price $13.99; EV/EBITDA NA
PASS. Matrix Service Company provides engineering, construction, and maintenance services for energy and industrial applications, with a strong focus on the LNG industry, including cryogenic terminals and peak shaving LNG facilities. Its backlog recently hit $1.4 billion, growing ~40% YoY—despite operating under a prior administration that was less favorable to natural gas. With the Trump administration, LNG infrastructure is likely to expand to support a growing export market. However, profitability remains a concern. Even in its best year, MTRX generated just $30 million in net income on $1.4 billion in revenue—a 2% net margin. This isn’t a commoditized industry, suggesting MTRX may have an inflated cost structure. Employee reviews indicate a top-heavy organization, with layers of middle management while field employees make up a smaller fraction. Shareholders appear to be last in line for returns..