Seatrium Ltd

“Seatrium is a recovering cyclical contractor, not a compounder — ROIC sits below cost of capital, free cash flow is deeply negative, management carries serious ethics baggage from predecessor entities, and the stock is priced at 26x trailing earnings on a 2.8% margin business with no near-term capital return; the 20-25% tail risk of a repeat cycle (write-downs plus dilutive equity raise) is not compensated by current valuations, making this a capital-allocation trap for long-term investors despite a genuine near-term backlog tailwind.”