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LYL, LYCOPODIUM LIMITED
nipper
post Posted: Jul 17 2019, 10:44 AM
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Last post 2012 (when it was $6+)
QUOTE
Lycopodium, ASX code: LYL

Share price: $5.30; Forecast 2020 distribution: 34c a share.

With [interest] rates once again hitting ultra-low levels, there has been a renewed interest in anything and everything related to gold .. given the opportunity cost of holding the commodity is reduced the lower rates go. Unfortunately, gold will not pay you a regular income, so to play the gold thematic while also receiving a meaningful income we look to a small engineering firm out of Perth that is one of the pre-eminent gold mine engineers across the globe.

Lycopodium was founded in 1992 and has operations across Australia, with it expanding to Africa, Canada and The Philippines in later years. The company offers a wide range of civil engineering services but is focused on mining engineering, procurement and construction management.

What attracts us is Lycopodium’s reputation in the gold-mining industry, its sound balance sheet and steady flow of contract wins to support the dividend payouts in the near to mid term. In its most recent update, the company noted that it had a healthy pipeline and high levels of work contracted, while guiding to $16.3 million of profit after tax. With a market cap of $211m and net cash of about $61m, Lycopodium trades on an undemanding single digit profit to enterprise value multiple.

Another pleasing point is its recent contract win from its Mondium joint venture with Monadelphous (MND). The consortium was awarded its largest contract to date, a $100m retreatment processing plant for a lithium miner in Western Australia ... notable as it was also its second contract with the company, Talison Lithium.

Lycopodium would be more appropriate for an income-seeking investor with a little more appetite for risk, given it is not immune to the swings of the mining cycle. With a fully franked, forecast yield of just over 6.4 per cent, potential capital growth and a sound balance sheet, we believe Lycopodium presents compelling value.

Gareth Abernethy is an analyst for Clime Asset Management.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 15 2012, 03:20 PM
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In Reply To: nipper's post @ Apr 12 2011, 09:24 AM

LYL - very few sellers; up some 6% to $6.91 on low volumes and no news.

now Market cap is $250mill



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 12 2011, 09:24 AM
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In Reply To: disco stu's post @ Apr 11 2011, 01:58 PM

Hey DS,

I agree, and just find it interesting that as an LIC it states
QUOTE
Mirrabooka faced an unusual environment over the six month period to 31 December 2010 in that areas of the market the Company does not traditionally invest in, such as the resources sector, enjoyed very strong returns. This strength in resource companies contrasted with the subdued share price performance of many companies outside this sector during the period.

As shareholders would be aware Mirrabooka's investment activities are focused on providing investors with fully franked dividends as well as capital growth over the long term. This means the Company is not a large investor in the more speculative parts of the market such as smaller resource companies. ...

and it now ends up with Top 5: ILU, CPB, HDF, OSH, AWC plus FWD, BKN, MRM in its Top 20 and also SNX, RQL, ORE, ESG, CAH among end-Dec holdings, and now LYL and AGO added




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
disco stu
post Posted: Apr 11 2011, 01:58 PM
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Cheers - checked it out, little more than a mention, but reasurring to see that some of the guys who specialise in the small end of town have their eye on it. LYL - yet another example often observed inverse relationship between discussion on a Co (bam-bamm excepted) and it's LT shareprice performance.

 
nipper
post Posted: Apr 11 2011, 01:37 PM
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In Reply To: disco stu's post @ Apr 9 2011, 02:51 PM

noticed that Mirrabooka has taken up an allocation in LYL post 31 Dec, according to their 16 March shareholder presentation



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: disco stu  
 
disco stu
post Posted: Apr 9 2011, 02:51 PM
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In Reply To: bam_bamm's post @ Apr 8 2011, 05:06 PM

Just went back through all the old posts and can't believe I haven't posted on this one - still got 1/4 of my holding that I bought at the depths of the GFC for $1.485.... only evidence I can find to back up my claim, short of posting a screen shot, is a posting at another site.

I think at the time it had a ridiculous PE of something like 2 or 3, still annoyed with myself for getting flushed out of the another 1/4 of my holdings around the same time as you in Sep of last year. The near 20% yield I am now getting on the initial investment is sure beating the hell out of the return I'd be getting if I had left it in the bank, and that's totally ignoring the capital gain.

I'm not tempted to sell out of this remaining 1/4, still hold high hopes that LYC can turn itself into another Mondolpheous in due course. I look forward to the day when the dividend on my remaining holding is equal to that initial outlay. smile.gif

 

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bam_bamm
post Posted: Apr 8 2011, 05:06 PM
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hope someone's been riding this one lately.
since i sold out in sept, its gone up 60%

i will now reveal my trades to anyone privately.... for a fee.
laugh.gif



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bam_bamm
post Posted: Oct 14 2010, 01:37 PM
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anyone watching this?
its been climbing since going XD, on thinnish volume.
the recent prelim report wasnt overly convincing for the future, but maybe things are turning positive?


im out, but will keep an eye on it.



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blueice
post Posted: Sep 27 2010, 10:55 AM
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In Reply To: bam_bamm's post @ Sep 27 2010, 10:50 AM

Thanks for the reply mate...........................

 
bam_bamm
post Posted: Sep 27 2010, 10:50 AM
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In Reply To: blueice's post @ Sep 27 2010, 10:38 AM

i'll keep half an eye on this over the coming weeks/months.
not sure on fair value to be honest mate.
but have a read of the first page of the prelim report of 23 August. Fundamentals should show themselves early next year, and thats what i'll be waiting for.

Seems to be a very, very well run company though.



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