XPLR Infrastructure: Sell Now If You Haven't Already (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• As anticipated, XPLR has changed its business model, resulting in a 0 distributions policy. The business now intends to fund growth via organic FCF generation.
• The new management team seems well qualified to make prudent capital allocation decisions given their capital markets experience in the relevant energy, renewables and infrastructure sectors.
• XPLR stock is rendered less attractive for yield-seeking investors, but also too early to inspire confidence for GARP investors due to an absence of an execution track record.
• Valuations are discounted vs historical levels and vs peers, but perhaps justifiably so. The technical charts remain powerfully bearish.
• Q4 FY24 saw a hefty impairment charge. I believe there may be risks of further impairments as the company is due to sell some assets in 2025 and 2027. In any case, this is something to monitor.

Read the full article here.