Yet Another Value Podcast Pitch the PM's Doug Garber on $TUSK's mammoth cash balance
May 26, 2025
Doug Garber, founder of the Pitch the PM podcast and a value investor, joins to delve into Mammoth Energy's striking cash reserves compared to its market cap. They discuss TUSK's financial resurgence after a significant settlement and the complexities surrounding its strategic asset sales. Garber emphasizes corporate governance issues, the company's transition towards industrial segments, and investor skepticism tied to its Puerto Rico operations. They analyze the implications of a CEO transition on TUSK’s future and the potential risks and opportunities in this intriguing investment landscape.
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Undervalued Cash Rich Company
- Mammoth Energy has a market cap of $118 million but holds about $135 million in cash, making it undervalued on a pure cash basis.
- The market heavily discounts the company due to uncertainty about future cash inflows, especially from Puerto Rico settlements.
Skepticism on Puerto Rico Cash Claims
- The market only gives credit for cash that is in hand and discounts claims related to Puerto Rico due to past delays and uncertainties.
- Investors treat non-cash receivables skeptically until they are fully realized.
Corporate Governance and Cash Risk
- Corporate governance risk looms large in cash shell investments; misaligned incentives can lead to cash misuse.
- Mammoth is controlled 50% by Wexford, which aligns interests better than typical management with no skin in the game.