From Seekingalpha · Long Player · · 50s
Unit Corp Rating Downgraded
Unit Corp gets sell rating as cash strategy unclear.
In brief
Unit Corp gets sell rating as cash strategy unclear. Unit Corporation's stock is downgraded to sell due to unclear cash strategy and poor shareholder communication. Originally reported by Seekingalpha.
Unit Corp Cash Balance
Unit Corporation holds nearly $190 million in cash, an unusually high balance relative to quarterly revenue of about $20 million.
Downgrade to Sell
I downgrade UNTC to a sell due to management’s lack of strategic clarity and minimal shareholder communication regarding cash deployment.
Dividend Concerns
Despite a secure $1.25 dividend, the absence of a special dividend, a clear capital return plan, or a strategic plan for that cash limits upside for investors.
Execution Risks
Concerns persist over UNTC’s finance-heavy executive team and lack of operating history, raising questions about long-term execution.
The short version
Unit Corporation's stock is downgraded to sell due to unclear cash strategy and poor shareholder communication.
