![]() The US and China have one common attribute – in both countries the dredging industry is considered very protected. As recently as 2005, the US Supreme Court reaffirmed the dredging industry, and the various specialty vessels it employs, was subject to the Jones Act. In the dredging industry, there is only one investor-owned firm, Great Lakes Dredge. Utilities and energy infrastructure are two well-known industries which benefit from these types of market restrictions and offer investment selections that cross market capitalization. Through the 1920 Jones Act and the 1906 Foreign Dredging Act, the US government severely restricts foreign participants from competing in the domestic dredging market. I was surprised when first researching Great Lakes Dredge to learn of the industry protection and support given by the US federal government. My article from Nov 2019, “Great Lakes Dredge & Dock: Underfollowed Civil Construction Firm With Multiple Long-Term Tailwinds” outlines in more detail the attributes of the dredging industry. This includes harbor and waterway maintenance, coastline restoration, and offshore construction projects. What is dredging? It is the process of moving the seabed from one location to another. Investor Walter Thornton trying to sell his Chrysler Imperial “75” Roadster for $100. ![]() Most importantly, much like utilities, the dredging marketplace is a protected industry. These include a very dominant market position, utility-like market support, an improving balance sheet, and a laser-focused management. Trading at a P/E of just 10x, GLDD has many unique attributes that should attract more investor attention, especially once the portfolio rebuilding stage begins. Little known Great Lakes Dredge & Dock ( NASDAQ: GLDD) is a small-cap growth company that is so far under most investors' radar that it goes mostly unnoticed. Looking for a “port in the storm”? Aren’t we all? I have found what I believe is an interesting place to put a bit of my larger-than-usual hoard of cash to work. ![]()
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