# TBG - Tutt Bryant Group



## bloomy88 (13 June 2009)

No thread on this one, so here's a quick run down....
Industry: Capital Goods
Main operations: Crane hire (with or without an operator), distribution of heavy equipment parts and heavy equipment hire (with or without an operator)
Major Shareholders: Tat Hong International approx 70%

TBG has been experiencing upward SP movement over the past few months, from a low of 30c it has now reached 66c.

Any thoughts on if this upward movement can be sustained?


----------



## So_Cynical (13 June 2009)

TBG showed up on my radar about 4 weeks ago...some bad announcement made 
there SP dip so i had a look and came to the conclusion that TBG was a cyclical 
stock with good potential going forward.

Unfortunately TBG also is one of those ultra low volume stocks that are hard to 
take a good sized position in...i have about a dozen of them in a watchlist, there 
ok to put a couple of K into longer term...but don't suit my trading plan at the 
moment due to ultra low volume.


----------



## bloomy88 (14 June 2009)

So_Cynical said:


> Unfortunately TBG also is one of those ultra low volume stocks that are hard to
> take a good sized position in...i have about a dozen of them in a watchlist, there
> ok to put a couple of K into longer term...but don't suit my trading plan at the
> moment due to ultra low volume.




I definately agree with you that TBG do trade on very low volume, but studies have confirmed that stocks that trade in low volume usually perform better than the market. This is probably because traders, like yourself, arent interested in them because they arent ideal for 'trading'.

The low volume doesn't particularly bother me at the moment because I have a LT investment horizon with TBG and as you said they are a cyclical stock that is likely to benefit when the world economy starts to heat up again.

Cheers

Disc: I do hold a small parcel of TBG shares


----------



## So_Cynical (14 June 2009)

bloomy88 said:


> Disc: I do hold a small parcel of TBG shares




Is that because u couldn't get a big parcel? :

Sorry couldn't help myself.

For the record i do like TBG and don't consider myself to be a full on trader.


----------



## bloomy88 (14 June 2009)

Haha fair point, I could have got a bigger one if I wanted to.

I didn't mean to offend you by saying you were a trader, that's just the way it sounded from your post. Please excuse me for the misinterpretation.

Cheers


----------



## prawn_86 (15 June 2009)

Who is this company? Or what do these guys actually do? 

Thanks

Prawn.


----------



## So_Cynical (15 June 2009)

prawn_86 said:


> Who is this company? Or what do these guys actually do?
> 
> Thanks
> 
> Prawn.




In a nutshell.....Cranes and equipment hire, nation wide in 36 locations with over 500 staff. 

http://www.tuttbryantgroup.com.au/tuttbryant/


Hiring cranes and conducting sophisticated ‘lift and shift’ operations with specialist equipment anywhere in Australia and off-shore.
Distributing construction plant, equipment and cranes, together with the provision of parts and service from a national network in Australia.
Providing general equipment for hire, including earth-moving, civil construction, rail, industrial, trade and handyman items.

Just having a quick look over the last annual report...there really is alot to like about TBG

http://www.tuttbryantgroup.com.au/verve/_resources/Full_Year_Results_31_March_2009.pdf


----------



## bloomy88 (16 June 2009)

So_Cynical said:


> Just having a quick look over the last annual report...there really is alot to like about TBG




If you look at 2009 earnings just reported the diluted EPS is 10.8cps, if you add back the pretax foreign exchange loss and account for tax (7.8mill - 30% tax = extra $5.46mill to profit after tax approx)
This would bring total earings to $19.66mill and divide ity by shares outstanding of 136.7 million this would bring undiluted EPS to 14.4cps.
This results with TBG trading at P/E of 66/14.4 = 4.6x

I would consider this to be an extremely low P/E and the SP is remaining depressed at the moment as a result of the worries about the world economy. Despite this, once the economy does begin to recover TBG's SP could improve dramatically as the worries of this sector pass.

TBG could still be considered high risk at the moment but it is a well established company that has posted strong profits since listing in 2005.


----------



## sitk (18 July 2009)

I'm liking this company, but gotta watch out for liqudity issues and also possible default. Earnings may still be positive, but cash flow (after required capex) is not. If they can cut back on capex and start paying off debts, this company is well undervalued. Just wondering how much of that they can afford to do when a lot of their capex is required just to keep the fleet maintained and up-to-date.


----------



## bloomy88 (10 November 2009)

sitk said:


> I'm liking this company, but gotta watch out for liqudity issues and also possible default. Earnings may still be positive, but cash flow (after required capex) is not. If they can cut back on capex and start paying off debts, this company is well undervalued. Just wondering how much of that they can afford to do when a lot of their capex is required just to keep the fleet maintained and up-to-date.




Gday sitk, 
Was just wondering how you calculated their required capex and if you'd like to share your calcs...
I realise that the industry the TBG operates in is capital intensive.
TBG up to 83.5c now (52 week high)
Bloomy


----------

