October 22, 2021 - Black Diamond Group is an attractive, high return on capital modular space business trading at a significant discount to peers. BDI operates a workforce accommodation business trading at trough multiples on trough earnings, which will benefit from increased infrastructure spending and elevated commodity prices. The company also operates Lodgelink, a fast-growing digital marketplace that the market has entirely ignored. RCIF values BDI at $5.65 per share with conservative assumptions, implying a 34% upside. Lodgelink offers free optionality with an additional $0.5 of value per share but could be worth more than the whole company is today.
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