MDR – MDR is trading near historically low valuations, and management has concerns about bidding activity and the current market environment

• • McDermott International, Inc. (MDR:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Assets, with a 1.0x Uniform P/B, implying fairly muted expectations for the firm. Management also has concerns about bidding activity and the current market environment
  • Specifically, management appears concerned about the sustainability of growth in bidding activity in Mexico, Europe, and Africa. They also appear concerned about continued competitive headwinds, customer caution on FIDs, and the weakness in the overall oil market