# BXB - Brambles Industries



## TheAbyss (17 January 2007)

Brambles (now BXB) Is at an all time high at the moment. Any reasoning why? My interest is selfish in that I have some but would welcome some insight. Cheers 



*Admin Note:* BXB was previously known as BIL. You can find the thread on BIL here: https://www.aussiestockforums.com/forums/showthread.php?t=2467


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## TheAbyss (29 January 2007)

Hi

Brambles (BXB) is looking like closing at a 3 year high today and i was wondering if anyone was able to do some TA on it and offer some thoughts?


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## marc1 (29 January 2007)

TheAbyss said:
			
		

> Hi
> 
> Brambles (BXB) is looking like closing at a 3 year high today and i was wondering if anyone was able to do some TA on it and offer some thoughts?



Yep good day for Brambles holders abyss

Chart been tracking sideways for a while and then decided to bounce.

A week or so ago.Most of the price action seems to be centered around persistent take over rumours that have been talked about for months.

Better than expected profit results was also talked about in the weekend.

Papers may be contributing to todays rise.

Hope you're holding, good luck.

I'm a long term holder of this one, just dont know how long it will be in aussie hands.  

cheers marc


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## TheAbyss (29 January 2007)

*Re: BIL - Brambles Industries*

Bought in @ 12.76 so pretty happy at the moment  

I was in their Qld offices and was impressed with what they were doing so invested a little on the strength of it.

I have managed a few wins this way with a couple of Qld companies, ABS and QGC 2 of the more notable wins.

Glad i am in so shall continue to watch


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## Halba (29 January 2007)

*Re: BIL - Brambles Industries*

This takeover nonsense geting silly.

BIL's fundamentals don't stack up.


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## TheAbyss (30 January 2007)

*Re: BIL - Brambles Industries*

Would you be able to expand on that Halba?


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## Buffettology (1 April 2007)

Definately a company I am interested in and will be looking at closely over the next few weeks.

I am also interested to hear what some of the investors on here think about the share buy-back and its affect on price?


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## imaginator (24 July 2007)

What is happening to brambles? Prices have been sliding like a slide, its now only 10.88. I thought they were a good company with good earnings etc always. Was the price pushed too high before??


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## Buffettology (24 July 2007)

Brambles divested its unprofitable business units. How it stands currently, was expected to make 20% growth per annum over the next few years, with moves further through the Americas and Asia (mainly China).   

Latest figures released was a growth of 11% I beleive, lower than expected, and hence the slide of its price.


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## UMike (24 July 2007)

They have been mentioned as a  potential takover target for a while now.

Dose anyone still think this is the case?


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## brendan87 (25 July 2007)

I doubt it. It's quite expensive for a start. From purely the fact that is has almost no debt - yes. However what would a private-equity LBO be able to squeeze out of BXB? BXB is already investing in efficiency and cost-saving initiatives - which have been pricesd into the SP already. It geographic spread is already extensive. It's a solid business - not a 'turn-around' story. The management are pretty determined to throw its spare cash into buy-backs and another 10% on-market buy-back is on the cards after the full-year announcement. Also has Maple Brown Abbott at almost 7% of the register which could, if history is any indication, stymie any less-than-generous bid. Perhaps a bid from a diversified industrial...? GE has eyed the company for years but I can't see any obvious (material) synergies. BXB is already quite a tight ship. But anything is possible.


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## Buffettology (25 July 2007)

brendan87 said:


> It geographic spread is already extensive. It's a solid business - not a 'turn-around' story. .




Just from memory, dont have my etrade account open ATM, but I beleive the far biggest part of its business is in Europe.  Whilst the Americas and Asia provide a MUCH bigger target.  So it is geogrphically spread, but the splits could change dramatically and hence, it could be a "turn around story" I beleive, from the Brambles that so much was expected from years ago, but never acheived.  Only time will tell, but for the moment, Im not holding any BXB, though at $11, I beleive a short-term position may be ok to take.


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## Trader Paul (28 July 2007)

Hi folks,

BXB ... making a V-bottom ... ???

..... will be alert for significant and positive news,
around 16082007 ... and figure BXB will be firing on
all cyclinders, in November 2007 ... particularly betwwen,
12-16112007.

happy days

  paul



=====


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## Awesomandy (8 August 2007)

It has been identified that National Rail Consortium now holds almost 16m shares, and MS Corporate Services hold 1.6m shares. They are both subsidiaries of AIO. 

It has also been revealed that TOL owns 5.1m shares in BXB as well. 

This appears to have fuel speculations for a takeover (personal opinion) , and BXB sp is up more than 9% so far today to $12.44 on relatively high volumes of almost 21m shares changed hands as of 2:25pm.

I think this might be interesting to keep an eye out for. 

disclaimer: I am a BXB shareholder.


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## Buffettology (8 August 2007)

I thought I read on BXB news (company announcements) that Asciano group is trying to takeover BXB.  It was a real quick skim, but if its right, your personal opinion is far more than that!

I never buy on speculation of a takeover, only if its possible to gain returns through arbitrage once the takeover is a sure thing.


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## ozambersand (8 August 2007)

This is a post I did in another thread on Market Expectations back in June:
Recently three ASX200 companies (Caltex, Metcash and Brambles) have posted record profits showing growth, usually on par with their predictions but the share price has plummeted because some analysts said the results were below "market expectations"



> > Roger Collison, an analyst at Tyndall Investment Management, said the market had been expecting European CHEP growth of up to 6 percent. (Associated Press)
> 
> 
> 
> ...




So I am not surprised there are now new major stakeholders and wonder whether they were just taking advantage of the drop in prices or helped to cause it. To that end, I would be very interested in knowing which brokers the above companies brought their shares through?


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## vishalt (8 August 2007)

toll holdings

wow @ the 10% surge today, knew there was something fishy with the bounce for $10

..................


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## Ken (8 August 2007)

Brambles was pumped up massively in the papers this week. Price targets of $14 were floated around.

There was a couple of days in a row of this.

Be interesting to see the outcome.


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## ozambersand (8 August 2007)

Just a couple of dates to put it into perspective.

June 20 Brambles shares close at $12.63

After the market closes there is a flurry of shares (nearly $100 millions worth) doing cross trades around the $12.60 mark. (They knew what was coming????)

June 21 Brambles announcement:


> Brambles expects good progress in profit and solid cash generation for the
> year ending 30 June 2007.
> KEY HIGHLIGHTS
> • CHEP is continuing to perform well with further solid overall growth in
> ...




Analysts criticise Brambles and express disappointment.

Opening auction @ $12.36 sees $770million shares sold. 

Shares close that night at $12.08 after another $100 million dollars traded in the post market auction and another wack in overnight off-shore cross trades.

The next morning a stack of puts got exercised. Wonder who had them!

From then on the shares decreased while the major stock brokers shed crocodile tears that "the market" had over-reacted to the news and started to slap buy recommendations on to the stock. Contrary to what you would expect from that, the sellers greatly outnumbered the buyers and the stock fell further.

This is where Asciano and Toll started to buy in according to this report:


> Brambles Limited conducts regular analyses of the underlying beneficial ownership of its shares.
> 
> In the process of undertaking such an analysis, National Rail Consortium
> (Insurance) Pty Ltd (NRC) confirmed to Brambles last night that it holds a
> ...




So it comes down to the chicken and egg problem. Why did the stock price dive so much. Was it "helped".

If this is true, then look out for the other cashed up companies that suffered similar fates recently after reporting increased profits only to see their share prices take a dive. (Caltex and Metcash etc) Maybe they will report new major shareholders in the coming weeks also.


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## Nick Radge (8 August 2007)

*BOTTOM LINE 
8/8:*
EW Trend: Corrective
Price Trend: Up
Trend Strength: Strong
Broker Consensus: Intermediate BUY
*25/7:*
EW Trend: Corrective
Price Trend: Down
Trend Strength: Strong
Broker Consensus: Intermediate BUY


*LAYMANS ANALYSIS 
8/8:*
VIDEO ANALYSIS (3 mins 5 secs)
Today's announcement that Asciano had acquired a small stake in the company seemed to create a trigger for Merger Arbitrage hedge funds (M&A). I'm not sure of the logic simply because Asciano does not have the financial wallop to mount any serious, in fact any, takeover of BXB. What this announcement does confirm though is the volume clues alluded to in the last review. The jump in volume back in late June was the initial instruction from Asciano to its broker to start acquiring shares. If Asciano is unable to mount any takeover, and if todays buying was knee-jerk from the hedge funds, then it would also suggest that the strength seen today may not be able to follow through. This is exactly what we anticipated in our late July review; a bounce toward $13.00 but then a failure. Todays high was $12.84 and volume was ultra high. We always need to be wary of ultra high volume and more so in this case if today's buying was indeed hedge funds. Hedge Funds tend to be "hot money", that is money that flows in and out of investments with ease with their only goal being profit. M&A funds attempt to ride the coat tails of takeovers and  mergers. Back in the 80's it was called "greenmail" and portrayed by Gordon Gekko's in Wall Street. Hedge Funds of today have made an art of the strategy even to the point of attempting to preempt takeovers. The colourful Rene Rivkin was also a low caliber follower of the strategies. 
*25/7:*
VIDEO ANALYSIS (3 mins 32 secs)
BXB did in fact slide through the target area. Again we see signs of buyers coming in right here and combined with various other technical indications we may start that bounce discussed in the last review. That bounce should take prices back toward $13.00 but is unlikely that we'll be on our way to new highs for quite some time. After this immediate bounce I would expect weakness to set in again. BXB may well be on course for an extended period of sideways activity between these kinds of lows and the major highs near $14.50. Many Brokers have downgraded their valuations back toward that same level from their more confident $15.00 levels seen a month ago. Volume has been very interesting again over the last few sessions. Monday was a low close within a reasonably range day yet volume was very small. This is a sign of supply being exhausted or not keen to chase prices any lower. Yesterday and today saw a distinct turnaround. Both sessions closed on their highs after earlier attempts in the day to move lower, and both did so on increasing volume. These combined with Monday's "lack of supply" points to a good probability turning point right here.


*TECHNICAL DISCUSSION 
8/8:*
Our seasonal patterns did not let us down. True, I was not expecting this kind of a move, but nonetheless we were looking for a wave-B bounce to travel through to $13.00. With today's ultra high volume we can expect some kind of consolidation at these levels but I'd still be looking for another decline or at least further meandering below the major highs. The $13.00 level is reasonable resistance being old support for a considerable time before failing back in May. I believe this to be the wave-B bounce and would be looking for selling opportunities, although doing so would require the use of a GSL facility. Who knows who or what can be lurking behind this volume. It may well be someone bigger and stronger than Asciano and this announcement has been a trigger for them to act. Normally a wave-B will resolve itself in a 3-wave pattern, so we're yet to see it completed. I'd suggest some patience is required here.
*25/7:*
If you've been interested to know more about my new seasonal analysis then tonights video is a great example of how we align the seasonal patterns with wave counts and volume analysis. Yesterday shows a clear start to an upward bias in the stock on 3 different timeframes, namely 6-year, 12-year and 19-year. These three were used because I have 19-years worth of historic data that I can divide it into segments. We are essentially averaging the last 6-year, 12-year and 19-year data then overlay them together. Any strong alignments across all three offer a reason to think some kind of seasonal tendency is at hand. Then, when these also align with our Elliott Wave patterns and Volume analysis, we can build a stronger story for the stock. In this case we have a strong seasonal period lasting until August 20, which according to our Elliott Wave count will most likely be the wave-B bounce. We've fallen in a clear 5-wave pattern, we're seeing some signs of buyers coming in, so we now have final confluence by way of the seasonal pattern as well.  Looking at the weekly chart of BXB, we could have further scope for a much deeper wave-C to come, but we'll assess that in due course. For now I highly anticipate that we're about to embark on the wave-B bounce which an aggressive trader could pursue. Obviously any sustained break of the yesterdays lows would invalidate the count.


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## ozambersand (8 August 2007)

Ken, those figures ($14 target price) have been around since *June* as summed up at FNArena. But for some reason they never got much publicity:



> 22-Jun-07 - Merrill Lynch rated BRAMB LTD FPO as 1 - Buy, Medium Risk
> Analysts acknowledge the 11 month trading update can be labelled "slightly disappointing", but they also believe investors over-reacted to the release. They have thus retained their Buy recommendation with a slightly lowered price target: $14.70 instead of the $15 prior. Earnings forecasts in AUD have been lowered due to the impact of a stronger Aussie. -
> Target price set was $14.70
> 22-Jun-07 - ABN Amro rated BRAMB LTD FPO as 3 - Hold
> ...




OK From the announcements on the ASX, it looks like the brokers/banks involved were Citigroup (Toll) and Macquarie (Asciano)

My broker put the poor performance of the share price recently down to the rising Aussie dollar. However, Brambles always quotes in "constant currency". 

Back in June I asked them:


> 1): Given that the latest report quotes a slightly less than 2% figure (also constant currency) how much of this difference relates to a variance in the dollar vs Euro ie what was the profit growth in terms of US dollars USm$669.8 - ?????.
> 
> Their reply: Please note that stating of figures in constant currency eliminates the impact of currency movements. That is why we provide this figure so that you are looking at underlying growth in the business and not currency movements.




The recent news articles are related to Michael Ihlein's comments about future plans for the company (nothing really new) and the "outing" of the major holders.

I was also surprised that their long term buy-back stopped suddenly on the 20th June. Perhaps while this was happening it was propping up the price artificially as whenever the price fell to the mid $12's they'd buy a few million and it would go back above $13. (I was doing nicely buying and selling while this was happening for a while!)

As soon as that stopped, it became a free-for-all (and a free-fall!)

Now I just wish I'd bought more when it was down so low for so long! 

Nick, great picking and technical analysis! I note that you have identified 20th August as a keydate for a seasonal downturn. The 22nd August is their annual reporting date. Fundamentally (as opposed to techinically) there might be a reason for a downturn as people push the share price up in expectation of this report then selling out just before because they have gained their speculative profit and don't want to be a part of any disappointment/negativity afterwards???


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## Awesomandy (8 August 2007)

ozambersand said:


> Why did the stock price dive so much. Was it "helped".
> 
> If this is true, then look out for the other cashed up companies that suffered similar fates recently after reporting increased profits only to see their share prices take a dive. (Caltex and Metcash etc) Maybe they will report new major shareholders in the coming weeks also.




I'm not sure if MTS can be placed in the same category. Some institutions have openly told the market that they are selling/have sold MTS. I have now pretty much digested their annual report, and, I have to admit, I'm considering doing the same thing. Of course, this discussion is for another thread...

Back to BXB... The growth was quite disappointing when compared to the expected numbers, but it is still double-digit. Of course, it does get punished, especially when the P/E is quite high - around 25 (don't have the numbers in front of me right now). 

However, personally, I think it is a pretty good cash cow for the long/very long term. It generates a decent amount of cash, has low debt, and has good growth potential. Currently, the market is expecting and looking for shooting stars. However, when the economy hits a speed hump, and with credit more expensive and harder to come by, I believe the "cash cow" companies such as BXB would be likely to outperform other stocks as investors look for companies will less debt to service, and has the ability to generate cash to get through the tougher times. I am also lucky enough to learn a little bit about the BXB business myself outside from the annual reports, and I'm quite confident that this stock is of good long term value - hence why I bought them in the first place.

Although, in the short term, I would agree with the previous posts regarding the sideways/downward movements. As mentioned, there is a pretty strong resistance at $13, and there is also a gap to be filled at around $11.50. But then, if you are in just for the short term, I'm not sure why you would still hold a bluechip stock that has gone up 12% in a day.


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## goldensun76 (9 August 2007)

Well, it depends on if BXB can break through $13 or not.  If it can plus the possible buy back later this year I think it will be a matter of time before it reach back to $14.
I wish I did get more when the price drop down to $10.85


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## Awesomandy (10 August 2007)

goldensun76 said:


> Well, it depends on if BXB can break through $13 or not.  If it can plus the possible buy back later this year I think it will be a matter of time before it reach back to $14.
> I wish I did get more when the price drop down to $10.85




It looks like we might have to wait another day for that. The intraday high was 13.05, but it retraced from that pretty quickly, back down to around 12.80. It closed at 12.97 with a flurry of activity just before close. This suggests to me that the resistance is here to stay (for now, at least). And with the overseas market tanking as we speak, we may have another buying opportunity coming soon.


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## goldensun76 (19 August 2007)

Well, looks like Asciano Group just took another piece in the stock.  With the Fed cutting the rate, there should be a chance for the stock to break $13...... I read in the AFR some people is thinking if a takeover of the stock comes, it will be in the $15 range...... Any thought??


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## Sean K (14 February 2008)

Did Asciano start cutting it's stake in about November.

They must be looking at it again.

Another 'blue chip' to investigate once the dust settles, or get the fingers a bit dirty with.


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## Muschu (20 April 2008)

Hi 
Any current thoughts amng the experienced out there in the cosmos as to where BXB are presntly situated on the buy - hold - sell spectrum?
Opinions / discussion would be welcome.
Thanks
Rick


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## Bill M (20 April 2008)

Muschu, I don't have an opinion either way but this story may be of interest to you.

"Brambles Limited (BXB) has responded to a fall in its share price, saying there had been a dramatic over-reaction to news that major US customer Wal-Mart was reviewing its pallet arrangements. Brambles shares fell more than 17% in morning trading due to uncertainty about the financial impact of the announcement on the company."

Full story here


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## Muschu (21 April 2008)

Bill M said:


> Muschu, I don't have an opinion either way but this story may be of interest to you.
> 
> "Brambles Limited (BXB) has responded to a fall in its share price, saying there had been a dramatic over-reaction to news that major US customer Wal-Mart was reviewing its pallet arrangements. Brambles shares fell more than 17% in morning trading due to uncertainty about the financial impact of the announcement on the company."
> 
> Full story here




Thanks for this Bill.  I did see this story and the consequent company announcement that the SP fall was an over-reaction --- followed by a lift in SP back to $9.  This is still significantly less than the SP has been for a long time.
I'm an amateur.  On the TOL discussion one comment was along the lines of not buying on a down-trend but rather waiting until it was thought a bottom had been established.
I'm surprised BXB has not drawn more comment these past few days.  I wonder whether any of the chartists or more experienced analysts out there in ASF-Land would like to offer an opinion on where BXB is situated right now.
R


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## reece55 (21 April 2008)

Muschu said:


> Thanks for this Bill.  I did see this story and the consequent company announcement that the SP fall was an over-reaction --- followed by a lift in SP back to $9.  This is still significantly less than the SP has been for a long time.
> I'm an amateur.  On the TOL discussion one comment was along the lines of not buying on a down-trend but rather waiting until it was thought a bottom had been established.
> I'm surprised BXB has not drawn more comment these past few days.  I wonder whether any of the chartists or more experienced analysts out there in ASF-Land would like to offer an opinion on where BXB is situated right now.
> R




From a fundamental perspective, Brambles is an expensive industrial when other companies have been hammered. Based on EPS growth of about 10%, Brambles is trading at some 17 times earnings. They are great managers of capital and have achieved strong returns of late, but palette management is about base line with economic activity as you can get. Plus, as we have seen  now, they have exposure to the US and indeed their earnings are exposed quite heavily to the US$.

Technicals - broke support of about 9.20 ish, but the high volume doji shows indecision - clearly, people have mixed views. Personally, technically and fundamentally I would be staying away, but it's just my .

One thing I will say is that next to JB HiFi, these guys report their financial metrics better than anyone on the ASX - great stuff in their financial reports, their accounting staff are top notch!

Cheers


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## Muschu (21 April 2008)

reece55 said:


> From a fundamental perspective, Brambles is an expensive industrial when other companies have been hammered. Based on EPS growth of about 10%, Brambles is trading at some 17 times earnings. They are great managers of capital and have achieved strong returns of late, but palette management is about base line with economic activity as you can get. Plus, as we have seen  now, they have exposure to the US and indeed their earnings are exposed quite heavily to the US$.
> 
> Technicals - broke support of about 9.20 ish, but the high volume doji shows indecision - clearly, people have mixed views. Personally, technically and fundamentally I would be staying away, but it's just my .
> 
> ...




Many thanks Reece for this comprehensive and informed comment.  Very much appreciated. I'd be interested to know your opinion of TOL on its thread.
Regards
R


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## cutz (9 January 2009)

G'Day,

I've been watching Brambles all arvo and i was wondering if an experienced techie could check it out and explain why it won't poke above 6.92, is what i'm witnessing a programmed distribution at 6.92 ?


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## skc (17 February 2009)

Just thought I'd bump this thread a little bit. 

Yesterday down 11.7%. Today it held above $5 for most morning, but now well and truely through this at $4.83, down another 14.5%.

They are still paying 17c interim dividend so at some stage the yields should kick in as a support. Anyone catching this falling knife?

For what it's worth, this action is similar to LEI after their recent profit downgrade. The selling pushed the stock down almost 40% (from ~$28 down to $16). It finally stopped on the back of some project wins and the dividend yield at 7.5%. 

Disclosure: Not holding, just watching.


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## ROE (17 February 2009)

skc said:


> Just thought I'd bump this thread a little bit.
> 
> Yesterday down 11.7%. Today it held above $5 for most morning, but now well and truely through this at $4.83, down another 14.5%.
> 
> ...




Market punish them for telling lies or inaccurately project impact... when the whole walmart debacle end they say it wouldn't effect their earning too much then wam down 25%-30%?  ....
in this environment better to be upfront and pain a **** picture than pain a rosy picture and under-deliver.

Watch WES farmers next when it report in 6 months from now and Coles and other division better stack up or they are under the same hammer.


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## voyz (3 March 2009)

before i start im majorly new in this game.
does anyone know whats happening wiht bxb or which way it heading? made a majorly bad trade with it on the day it plumeted then it did it again and still i hold at 2700 dolla loss. yesterday was $3500 loss. im hopin for it to get bak to $5 and sell at a 2k loss. to scared to buy more at a low price to work my average down incase it keeps goin further down.
dont flame me.
cheers

sell an start agian? im using leverage.


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## JTLP (4 March 2009)

Voyz...

Mmm....whilst nobody can tell you to buy, hold or sell (gots to be a financial panther (planner  ) you should think about the following:

- What was your trading strategy?
- Can you afford to lose the money you invested?
- Do you believe it will go higher or lower (with either T/A or F/A evidence)
- Do you believe in the fundamentals of the company and are you prepared to hold based on what you know?

I'm sure there is a lot of other stuff to think about but that is some of my criteria when it comes to stocks...

Good luck


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## voyz (25 March 2009)

hi

does anyone know why bxb fell 60 cents today wiht no report or nothing.
just curious to know if anyone know what could have caused this fall.??

cheers


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## skc (25 March 2009)

Slump over nothing really... see here.

http://business.smh.com.au/business/brambles-tumbles-over-lost-contract-20090325-9aay.html

The defection to plastic sounds like a one-off account only - I'd be worried if they lose increasingly more contracts. 

1% of revenue reduction should not lead to 10% share price fall. Market seemed to overreacted. There could be a bounce back up tomorrow, but who knows?


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## ROE (25 March 2009)

voyz said:


> hi
> 
> does anyone know why bxb fell 60 cents today wiht no report or nothing.
> just curious to know if anyone know what could have caused this fall.??
> ...




No man they lost to a rival and I think this rival can be a big threat for brambles

I have Brambles on my watch list to buy but I no longer want to buy at this price given this threat... this iGPS is a beauty, I did a bit of research, if this was a public company I probably buy that  and hedge with Brambles but it is privately own.

I think the fundamentals structure for Brambles has change and it may not be apparent right now give it a few years it could eat into brambles market share and with the Walmart debacles I think Brambles lost their monopoly pallet status... When your customer dictate on their term how they want to use and pay for the pallets, that spell the begin of the end.

it smack brambles in the head for doing nothing all these years except keep doing old wooden pallet for the last 30 years...where is their research into something better, where are they keep an eye on competition and see what they have in store and use their monopoly status to come up with the same or better product while they are developing it.

Remember Yahoo used to be the king of search engine and even have chance to buy Google but no they did nothing then Google becomes a threat too damn late.


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## ROE (25 March 2009)

skc said:


> Slump over nothing really... see here.
> 
> http://business.smh.com.au/business/brambles-tumbles-over-lost-contract-20090325-9aay.html
> 
> ...




I think it's more than 1% in the near future, I think the market do it nice to Brambles today, it going to get smack it harder in next few weeks once they uncover what I already uncover..


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## skc (25 March 2009)

I was interested enough to go on the plastic pallet's website and check out their systems. Agree that they do look nice and will eventually earn their share in the market. They do have high barriers to overcome so the decline of CHEP will not be overnight. 

1% revenue was based on the newspaper article. If there are more customer defections then the SP will face a nice smack down.

So what do you know, ROE?


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## ROE (25 March 2009)

skc said:


> I was interested enough to go on the plastic pallet's website and check out their systems. Agree that they do look nice and will eventually earn their share in the market. They do have high barriers to overcome so the decline of CHEP will not be overnight.
> 
> 1% revenue was based on the newspaper article. If there are more customer defections then the SP will face a nice smack down.
> 
> So what do you know, ROE?




Plastic Pallet has higher cost but it has all the other benefits that will in the long run beat wooden pallets.

they can go through a lot more trips before it make any serious damage to the pallet, wooden maybe 6-10 trips and it need repair.

Water resistance, so can store in and out and every where really without too much damage done to it.

100% recycle and if they play the environment card, wooden pallet lose out.

Transport cost
http://www.plasticpallets.com.au/timbervsplastic.html 
Granted this website figure is a little high and maybe bias as well but regardless of the figure the price tag will be higher because wooden pallet is at least 30% heavier.

from iGPS site, if you are a renter like Pepsi the rental price are similar to
Wooden pallet and I assume they compare it to Brambles and the generic white pallets... so I ask myself a question, why wouldn't I use these plastic pallets if it cost the same for my business, and they can brag on about their environmental bull**** that they are a responsible corporate citizen for Free 

etc... etc.... too long to post on forum.

that is my understanding of it and I could be wrong but I based my decision on my research and if I am wrong then I am wrong I don't blame anyone for mis-information, so you should do the same.

Granted these players are smaller than Brambles but I see it has attack brambles core fundamental structure and like Uncle Phil from common stocks uncommon profits when the core of the business landscape change 
you should be looking at it closely whether you want to hold the stock or not. 

And I am not all gloomy on Brambles just yet, they still have time to counter this threat with a price war and come up with the same product and knock them dead before they getting too big.

so haven't given up on Brambles and continue monitor and research on the 2  and if the management is doing nothing in the next few years well we can say alot about its management ...
and that should keep me away


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## ROE (25 March 2009)

skc said:


> I was interested enough to go on the plastic pallet's website and check out their systems. Agree that they do look nice and will eventually earn their share in the market. They do have high barriers to overcome so the decline of CHEP will not be overnight.
> 
> 1% revenue was based on the newspaper article. If there are more customer defections then the SP will face a nice smack down.
> 
> So what do you know, ROE?




also remember that pallet are capital black hole, you lose the customer you not only lose revenue you may need to get rid excess pallets and it cost money and then one day you have to make it again for new customers....

at $20US (figure from their presentation recently when I did research on it a few weeks ago) a pop it's not cheap ...

don't believe the 1% figure market it has far more damage than that..look at Walmart debacle.

PS: no announcement from bxb on the contract lost either, i don't like it already.. .
where is honest management coping it up or these guys putting the announcement through a day spin doctor before it comes to the market


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## skc (26 March 2009)

Thanks for the information, ROE. I was under the impression that you know something else that nobody knows. Like perhaps you are the global head of logistics for Coca Cola or something like that .

I agree with your analysis, the threat to BXB is real. Although it is about a lot more than just the pallet, the entire system is what BXB has built and can still leverage if their management get a move on. Let's see how this play out.

On a separate note... BXB bounced back up by ~4.5% today.


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## ivant (5 April 2009)

Hey guys,

I thought I'd post my two cents worth here.

Firstly let me warn you that I am a futures trader and my most heavily traded instrument is the SPI200. Secondly, I dont know much about stocks but still trade them everynow and then. 

I bought into this stock and Macquarie right around when the market was 3100, (BXB at 4.70, and MQG at 15.50) and there were some pretty big differences on tape. I sold MQG at $26 the other day and BXB at $5.25. Percentage wise thats a massive difference, one killed the market over this few week period, the other one got killed.

BXB seems to be weak, despite mass euphoria and people buying everything. 

Ive been a favourite of BXB for a while, and traded them when the Toll and Aciano business was still going around, but there is a lot of weakness, so my assumption is that someone has been moving the stock from the inside or someone that is wealthy and knows something. That big one day drop was odd a few weeks back.

I'm shorting the market on my SPI trades, so naturally I am in cash, but i am not going to go back into when the market retests the lows posted in early March, however long we will have to wait for that. 

Hope this helps some puzzle lover out there.

Cheers,
Ivan


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## Bluebeard (6 April 2009)

I am not a holder of Brambles, I was in some years ago ... I just visited the igps site, and Brambles will imho need to respond, especially since the pepsico decision. Would Brambles try and buyout this Outfit? or will they try and produce a similar type pallet to counter igps? Peoples thoughts on this question would be most helpful.


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## tndang (4 May 2009)

hi guys,

is there any site that would allow me to track share price movements of brambles according to announcements and performance? in one summary format?

any info would be greatly appreciated. 
thanks.


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## skc (4 May 2009)

tndang said:


> hi guys,
> 
> is there any site that would allow me to track share price movements of brambles according to announcements and performance? in one summary format?
> 
> ...




Google Finance can be quite good for major Aussie stocks.


http://www.google.com/finance?q=bxb

Good luck.


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## Garpal Gumnut (13 October 2009)

Many of my mates have been in Brambles from time to time.

I may have a punt with a stop loss at $7

Aint a recovery a great opportunity.

gg


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## quarky (14 October 2009)

skc said:


> Google Finance can be quite good for major Aussie stocks.
> 
> 
> http://www.google.com/finance?q=bxb
> ...




it's actually this --> http://www.google.com/finance?q=asx:bxb

you need to put *ASX:*BXB, to get the charts of ASX listed stocks, otherwise you'll get foreign "BXB" charts.


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## Letts (24 June 2013)

I'd be interested to know peoples thoughts on this stock. I am a low-level holder of the stock, mainly because I wanted a fairly solid stock and the growth over the past year has been impressive. Does anyone have an opinion on whether this stock will head north?


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## DocK (7 July 2014)

http://www.thebull.com.au/premium/a/47134-18-share-tips---7-july-2014.html


> Brambles (BXB)
> 
> CHART
> 
> ...




Hi Letts,

In the absence of any more informed opinions, I thought I'd post the above.  It certainly has been on a tear this year and the recent dip has me wondering if it may be a good time to buy.


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## piggybank (7 July 2014)

Here's the chart you were referring to Dock


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## DocK (7 July 2014)

piggybank said:


> Here's the chart you were referring to Dock
> 
> View attachment 58586




Thanks, piggybank.  Do you have an opinion on the comments in the article?


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## Ann (25 February 2019)

Gosh, no one cares about this one anymore! 

*Brambles' $3.5b asset sale, buyback, boost shares*
_
Brambles has agreed to sell its reusable plastic container business to a unit of Abu Dhabi wealth fund for over $US2.51 billion ($3.51 billion), earmarking most of the proceeds for a buyback and sending its stock sharply higher.

From the $US2.36 billion that the company expects in proceeds, it plans to return up to $US1.95 billion to shareholders. Its shares hit a two-year high at the open of trade, gaining as much as 8.1 per cent, while the broader market rose 0.2 per cent. More....
_
....and an EquiVolume chart just to show there are no big volumes getting ready to slam the price back down. It has one last gap to fill and then the double top at around 13.50. After that it is blue skies.


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## Smurf1976 (5 March 2019)

Ann said:


> ....and an EquiVolume chart just to show there are no big volumes getting ready to slam the price back down. It has one last gap to fill and then the double top at around 13.50. After that it is blue skies.



The gap is now filled with a spike not long after your post. So that leaves the previous top not far away.


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## Ann (8 March 2019)

Smurf1976 said:


> The gap is now filled with a spike not long after your post. So that leaves the previous top not far away.



Gap still to be filled after the spike at around 12.25. Again an EquiVolume chart.


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## Dona Ferentes (20 April 2020)

Brambles would be a net beneficiary of the current situation in terms of activity but, despite demand soaring to record levels, Brambles has *trimmed sales and earnings guidance slightly.*

 Some 80% of the biz is moving consumer goods around. The consumer staples sector has seen record levels of pallet demand across grocery supply chains. However the the increase in demand and changes to network flows created by COVID-19 “have driven short-term increases in supply chain costs” that are eating into margins to an extent.

It is being hit by the shutdown of the automotive and hospitality industries; a stop on beer deliveries means Brambles' Kegstar business is struggling.


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## Trav. (4 June 2020)

I entered BXB today after the afternoon scan came up with a buy.

- CAM Pull Back signal
- Trending up nicely
- Short term resistance @ $11.78


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## sptrawler (4 June 2020)

I sold out of brambles 100 years ago when they couldnt find their pallets.
Thanks for putting them back on my radar.


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## Trav. (4 June 2020)

sptrawler said:


> Thanks for putting them back on my radar.




No problems @sptrawler , there seems to be plenty of quality popping up on the daily scans and strike rate is looking good.


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## Dona Ferentes (20 October 2021)

logistics group Brambles has warned that supply chain issues across its global businesses could potentially hit its forecasts for the current financial year.

In its September quarter trading update, the company cited higher costs for timber (for its pallets), labour (wages in the US) and transport (higher energy costs).

For the quarterly update, Brambles says sales revenue from continuing operations rose 11% on the prior corresponding period to $US1.292 billion, and was up 9% in constant currency terms.


> “_Our first-quarter sales performance demonstrates the commercial resilience of our business, with pricing and surcharge mechanisms supporting the recovery of increased costs across global supply chains,_” Brambles CEO, Graham Chipchase said in the update




For the 2022 financial year, Brambles says it is expecting sales revenue growth of 5% to 7%, underlying profit growth between 1% and 2% (including approximately US$50 million of short-term transformation costs).

Revenue growth will moderate from the 9% in the first quarter “due to stronger FY21 revenue comparatives for the balance of FY22.”

Free cash flow is expected to be an outflow of approximately US$200 million, but Brambles says this is dependent on a number of factors, including timber prices, sawmill capacity and efficiency of global supply chains.


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## divs4ever (15 February 2022)

Response to Media Speculation

Brambles Limited (ASX:BXB) notes media speculation earlier this afternoon regarding possible corporate interest in Brambles. While it is Brambles' policy not to comment on rumour or media speculation, Brambles confirms that it is not in discussions with, nor has it been approached by, any third party. Brambles is aware of its continuous disclosure obligations. The release of this announcement was authorised by the Chairman of Brambles Board.

 DYOR

 i do not hold BXB , currently    , but have in the past  and coincidentally cancelled a buy order earlier this afternoon as the price drifted up out of target range (  i was looking for $8.80 )

 i was looking at this as a 'safe haven ' rather than a recovery play 

 take care


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## eskys (22 March 2022)

divs4ever said:


> Response to Media Speculation
> 
> Brambles Limited (ASX:BXB) notes media speculation earlier this afternoon regarding possible corporate interest in Brambles. While it is Brambles' policy not to comment on rumour or media speculation, Brambles confirms that it is not in discussions with, nor has it been approached by, any third party. Brambles is aware of its continuous disclosure obligations. The release of this announcement was authorised by the Chairman of Brambles Board.
> 
> ...



Brambles announced a share buy back this morning. Noticed there was a dive on Friday last week with a large volume traded. ??? is it getting more stable now??????


This appendix is available as an online form Appendix 3C
Notification of buy-back
+ See chapter 19 for defined terms
5 June 2021 Page 7
4.8 *If the entity has disclosed an intention to buy back a
maximum number of +securities, the remaining number
of +securities to be bought back as at the end of the
previous day
Note: ASX has calculated this number for you based on previous
notifications. If it is not correct, please amend it to the correct number
and consider whether any updates need to be made to previous
notifications.
Up to a total of 144,400,000
fully paid ordinary shares.
37,265,672 shares have
been purchased to date,
the remaining number of
shares to be purchased is
up to a number of
107,134,328 shares.


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