Kontrarian Korner #18 - Judd Arnold

This week I had Judd Arnold of Lake Cornelia Research Management on the podcast. We discussed two companies I have been very interested in, Sable Offshore $SOC and Navios Maritime Partners $NMM . Judd walked through the numbers on both companies and explained what he thinks the next couple years look like for both companies. We also discussed some of the names in the offshore space, which has had a rough month along with oil.

Podcast Summary

* The regulatory situation in California and how it impacts Sable.

* Why the recent settlement with Santa Barbara County took out a bunch of the risk.

* Sable’s path to production and the potential for future capital returns.

* The potential for carbon capture with Sable’s land holdings.

* The situation for Navios and his recent memo on the company.

* Why he’s bullish on Navios’ new builds, even though most shipping investors hate new builds.

* We discuss the options chains and why Navios LEAPS might be interesting for risk tolerant investors.

* We talked about China’s shipbuilding sector, The Jones Act, and why shipbuilding won’t come back to the US.

* Why he prefers Tidewater $TDW to Seacor $SMHI .

* His thoughts on Borr $BORR , Valaris $VAL and Transocean $RIG .

* Book Recommendation: The Invisible Billionaire: Daniel Ludwig by Jerry Shields.

Disclaimer

I own shares of Sable, Navios Maritime Partners, Tidewater, Borr, and Seacor. I also own calls on Navios and Transocean, as well as Valaris warrants. You should do your own research before making any investment decisions. Different investment strategies have different risk/return profiles which should be considered before making any decisions.

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