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BOL, BOOM LOGISTICS LIMITED
terrine
post Posted: May 15 2019, 11:36 AM
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oops

 
nipper
post Posted: Nov 24 2018, 10:33 AM
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Investors at all levels have been left stunned as the group that had been specialising in solar farm projects went into administration because it could not get bank ­finance. RCR has been the worst story so far, but it is only one of a number of blow-ups this month that have hit the contracting industry.

Others include crane operator Boom Logistics, where the stock fell almost a third after a profit downgrade due to strike action, but has since partially recovered. Similarly, shares in mining services stalwart MACA got smacked 25 per cent due to increased labour costs, and one of the giants of the sector, Lendlease, fell 25 per cent after announcing cost blowouts in engineering contracts.

Before discussing whether any of these companies are worth buying (RCR excluded), it’s worth looking at how it came to this and how you can avoid owning an RCR at the wrong time.

The first thing to note is that the earnings of contractors are highly cyclical, which means they benefit from fast economic growth. Certainly, a key to much of the pain being experienced by these companies isn’t on their ability to get work, which we don’t think will be a problem for the next one or two years at least, it’s their ability to get profitable work. Put another way, it’s their inability to keep costs down.

But in my opinion, even more important is the folly of chasing growth for growth’s sake. When working out whether these stocks are worth investing in, the best place to start is the balance sheet. In their fixation for growth that most broking analysts have, they often ignore this particular arm of the financial statements.

A good way to look at contractors is using the company’s book value, rather than its earnings, to value the company. The book value is simply assets minus liabilities, or net assets. This is typically more stable than earnings because it’s a balance sheet item.

Lendlease might trade on a low price-to-book multiple after its big sell-off due to writedowns relating to cost blowouts in its engineering division, but that does not mean it’s good value. In order to assess this, we need to look at its future growth prospects. For a number of years now, this business has been globally diversified and has a $71bn development pipeline: once you factor that into the equation, this company looks great value.

Crane operator Boom Logistics is vulnerable with debt of $44 million, but it has reduced this debt from almost $90m only four years ago. Also, management is turning its operations around and increasing its utilisation rates and hence producing positive cash flow. There are still risks, but Boom at current levels is trading at almost half its net tangible assets and that’s cheap!

Like Boom, mining and civil services contractor MACA is facing cost pressures from increasing wages, which is an inevitable impact of a tight labour market driven by a strong economy, which is actually a good thing. Besides having been around for a long time, MACA has some $63m in cash on its balance sheet.

Because of their high fixed-cost base, these stocks have the operating leverage that can supercharge your portfolio’s returns. But as RCR shows, you have to be able to treat management optimism with a great deal of scepticism in order to profit.

- Richard Hemming is an independent analyst who edits undertheradarreport.com.au



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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
 
terrine
post Posted: Jul 16 2018, 11:10 AM
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Are the worst days over for this one?Been looking at it.
Sseems they got smashed in the WA downturn last few years but moving to the east coast may have upside??
Those 2 Liebherr 750 tonne cranes they have invested in look great with the windfarm expansion happenning.Have a look at the LTM 1750-9.1 crane in action doing just that
https://www.youtube.com/watch?v=6_cIcLmpnYM

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doc-gt
post Posted: Jan 23 2014, 10:14 AM
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In Reply To: arty's post @ Oct 22 2013, 01:04 PM

A second effort is presently being made to crack BOL's 20.5 cent barrier, but the momentum is unconvincing and a retreat and consolidation may be required before a third effort unfolds. Hope I'm wrong.

 
arty
post Posted: Oct 22 2013, 01:04 PM
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Reading the Results of Meeting: http://www.asx.com.au/asx/statistics/displ...;idsId=01455887

There seems to be some discontent with a few directors unsure.gif
And the remuneration scored a first strike ph34r.gif



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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)

Said 'Thanks' for this post: doc-gt  
 
arty
post Posted: Oct 13 2013, 06:51 PM
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In Reply To: doc-gt's post @ Oct 13 2013, 03:40 PM

Thanks Doc;
I hadn't looked at them for a long time, but you could be right. The Weekly (if I had scanned on that scale) shows two "W"arnings of a trend reversal.

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If the previous 17c resistance turns into support, I reckon it's worth a shot in anticipation of the break into the 20's.

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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 


doc-gt
post Posted: Oct 13 2013, 03:40 PM
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I've had a shy entry into BOL recently, principally on the basis of the Book Value of the company being 4 times the market cap, and the value of NTA being 3 times the market cap. On its own that's no guarantee of success, but I also like the action reported by the company to turn around a number of years of poor business performance. If the SP gets through 20 cents on strong volume, it could get interesting.

 
arty
post Posted: Oct 25 2012, 11:45 AM
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After my last foray and stop-out, I left BOL off my watchlist; but recently, it's showed up on a few retracement/ support scans.
Skimming over the recent reports, it appears they've consolidated their position and are back in Ms M's good books.
Not much volume yet, but I start building a Long position at current levels.
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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 
arty
post Posted: Feb 1 2012, 03:54 PM
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In Reply To: arty's post @ Jan 23 2012, 01:23 PM

I used the lower part of the trading range as the basis for a shorter-term calculation, and found a strong resistance at 28-29c.
The lessening volume and Bearish Divergence in MACD increased that "better take profit" feeling. So I did.
I'll happily buy back if it decides to close the gap to 24.5c.
If not, a break above 29c would at least provide more confidence that the rise can be sustained.
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--------------------
I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 
daggie
post Posted: Jan 23 2012, 05:30 PM
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In Reply To: arty's post @ Jan 23 2012, 01:23 PM

Thank you Arty. You are my charting guru and when your charts look good, I really like them, but I must admit that I know "precious little" about it. So, I would like to wish you a prosperous 2012 and hope that you will bring us a lot of wonderful, colourful and profitable drawings (you call them charts) and share them with us. PS. Keep the ugly ones in the bottom drawer.

 
 


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