From Seekingalpha · The Value Investor · · 40s
Cardinal Infrastructure Shares Plummet After M&A Surge
Cardinal Infrastructure's shares crashed after aggressive M&A deals failed to boost margins.
In brief
Cardinal Infrastructure's shares crashed after aggressive M&A deals failed to boost margins. Cardinal Infrastructure's shares dropped from $100 to mid-teens as recent M&A deals strained margins. Originally reported by Seekingalpha.
Cardinal Infrastructure Shares
Cardinal Infrastructure shares soared to nearly $100 before collapsing to mid-teens amid margin pressure.
Aggressive M&A Growth
CDNL's revenue growth from organic expansion and acquisitions failed to translate into proportional EBITDA.
Dilutive Hughes Brothers Deal
The $357 million Hughes Brothers acquisition appears dilutive given current share price levels.
Margin Collapse Concerns
Recent M&A deals require significant share issuance, raising capital allocation concerns despite low valuation.
Here's the gist
Cardinal Infrastructure's shares dropped from $100 to mid-teens as recent M&A deals strained margins.
