BLY - Boart Longyear Group

[bernardp]

Hi guys,

Am new here, have been reading the forums for a fair while and decided to register. I noticed a thread has not been started re: BLY. The price has risen fairly since the IPO and a fair bit of volume has gone through it just today.

Does anyone have any thoughts on this share?

Appreciate the feedback.

Bern

 

[doogie_goes_off]

They could hardly have chosen a better time to float, profits unlikely to get any better than this year so many will bail after XD date I guess?

 

[Fab]

They could hardly have chosen a better time to float, profits unlikely to get any better than this year so many will bail after XD date I guess?

Why? Eureka report and Macquarie appears to be very positive on this stock. I lilke the fact that they have long term instalment warrants available. My problem is I don’t know much about them except that they are involved in drilling… sounds good in a middle of a mining boom. How good is the management team? What are the EPS forecast for 2008 – 2009? What P/E are they trading on? Basically any information on them would be much appreciated.

 

[greenfs]

It was announced last week that this stock, together with NWS, is to be added to ASX 100 index about mid June 2007. This should lead to the sp remaining strong as the institutions and funds managers bid to be holding in line with its % value of ASX100.

After watching with interest since the listing, I today bought into this stock intending it to be a long-term hold.

 

[Love Zn]

Bern

I think this will be a good investment. With so many people throwing money in companies to drill holes in the ground to explore for the likes of Uranium, it makes perfect sense that companies providing the drilling equipment and labour will do well out of it too.

Also have a look at Ausdrill - ASL, appears to be doing well and has been listed longer.

 

[kerosam]

anyone knows if they provide rubber tyres for the mining heavy machines? i think they BLY is less volatile than the mining companies who depends heavily on metal prices.

might be a safer heaven within the resource industry.

any idea who are the top 20 shareholders?

 

[Love Zn]

anyone knows if they provide rubber tyres for the mining heavy machines?

Not BLY Goodyear perhaps

And just incase your wondering Austin Enginerring (ANG) do large dump truck bodies and exacavator bins for the mining industry

any idea who are the top 20 shareholders?

No Annual Report published yet, but this may give you some idea:

Shareholders buying
Date Shareholder Previous % New % Shares Traded
07-05-07 UBS Nominees Pty Ltd and its related bodies corporate -- 5.36 --
26-04-07 Challenger Financial Services Group -- 5.50 --
17-04-07 The Capital Group Companies, Inc. -- 5.09 --
05-04-07 Macquarie Bank Limited -- 5.65 --

 

[Beej]

Hi - first post here for me after a long time lurking, but I have an interest in this stock.

I thought this one looked to be on a good upward trajectory leading up to their first results announcement on Aug 23rd, however, the last couple of days have seen a bit of a sell-off (on lightish volume though, seems to be a lack of demand on the buy-side?), and the price has fallen accordingly back to early/mid May levels (currently at $2.13/$2.14). This is also on the back of UBS Nominees Pty Ltd having now increased their holding to 6.5%?

Anyone got any idea what might be going on? Maybe just some light profit taking at the start of the financial year? Is everyone still bullish in this company?

Cheers,

Beej

 

[greenfs]

This share was admitted into ASX100 this month and on the strength of this I immediately included it as a long-term investment stock, rather than as a trading position stock.

It supports the mining sector with all appropriate services and appears to be in the midst of a very strong break out if you could call it that given the stock has only been listed for a relatively short time frame.

No doubt strong interest from all fund managers who wish to build an appropriate percentage interest in the stock is having an impact.

Do other subscribers have an opinion based upon the chart or is the time fram simply too short?

 

[reece55]

As an accountant in the exploration mining sector, EVERYONE has to use these guys because no one has the drilling equipment like these guys do. And boy do they make a mint out of it, their bills are SOOOOOOOOO much....... I've had to review them!!!

Fundamentally, looking a bit expensive (not that this is how I trade), but honestly they have a strangle hold in the sector where it is just ridiculously hard to find drill rigs.

What can I say, I bought this one on the opening day and so did my boss - we haven't looked back!!!

Cheers

 

[ta2693]

I think big guys are already in, we are a little bit late. I prefer to stand out, even if it is the kind of stock with unique competitive edge.

Shareholders buying
Date Shareholder Previous % New % Shares Traded
07-05-07 UBS Nominees Pty Ltd and its related bodies corporate -- 5.36 --
26-04-07 Challenger Financial Services Group -- 5.50 --
17-04-07 The Capital Group Companies, Inc. -- 5.09 --
05-04-07 Macquarie Bank Limited -- 5.65 --

 

[aosleung]

Good article in the AFR on both BLY and ASL today. Worth a look! Given that the mining boom, it's obvious that these companies will get most the benefit. When reading up on oil stocks and geothermal stock news, it appears drill rigs are in demand and BLY is a vertically integrated company (ie. supply equipment and provides a drilling service)! The also don't have the risk of not being able to find the stuff underground becuase they are there to provide a service and will get their fee regardless. On the other hand, a lot of companies will be moving towards development (from exploration) so should see BLY and ASL revenues go up even further thus reducing PE ratios.

ASL compared to BLY looks cheap with a current PE of 14x (compared to sector PE of 20x) even though it's share price has gone up 20% on the back of a takeover announcement. Given the low PE, I believe the acquirer (not yet known) can potentially pay more for it (base on PE alone) esp. if it's a buyer within the same industry hence ASL should be a good one to hold!

BLY has performed strongly and is a much larger company with good coverage which is the reason I like this stock. In volatile markets like now, I think information and transparency is very important.

 

[greenfs]

This little baby has had a kick along in recent times. I also notice in Commsec that the overall participating stock recommendation is progressively moving from a Medium Buy to a Strong Buy consensus.

Here is the latest graph. Notice the strong volume and positive DMI with MACD also improving. This one might just be about to add about 10% to the sp.

 

[engo]

Ok, anyone have an idea why BLY is getting hammered so hard, (ok I know the whole market is getting hit, but BLY seems to be getting hit a little bit harder than most, considering there has not been any announcements from BLY).
In December it had a heap of strong buy recomendations from various brokers, now it seems to get hit a little harder than the market on most days.

 

[josjes]

Ok, anyone have an idea why BLY is getting hammered so hard, (ok I know the whole market is getting hit, but BLY seems to be getting hit a little bit harder than most, considering there has not been any announcements from BLY).
In December it had a heap of strong buy recomendations from various brokers, now it seems to get hit a little harder than the market on most days.

Just coming back to earth, back in November, the commodity boom was predicted to keep going forever. Whereas now, global slowdown/US recession is being priced in. Don't worry , it's not just BLY, similar mining services company like Monadelphous (MND) and Campbell Bros (CPB) are also being hammered in the the range of 40-50% from top.

 

[agro]

Anyone know whether Macquirie has stopped shorting Boart because market sentiment looks as though it has returned with a recent reversal in sp?

or is it the demand for mining services amidst a commodity boom?

 

[greenfs]

I note that there has been some changes amongst the larger shareholders in recent times, which saw the sp under pressure

The latest uptrend with this sp looks encouraging and the next 2 or 3 days will be very interesting with IMO $2.60+ again a realistic outcome in the short term. This opinion is based upon significant candlestick presence over the past few business days (see below) no doubt triggered by the recent unscheduled profit guidance report by the board.

What do others think?

 

[moolah]

Seems to be unloved. I don't know what information is out there to explain why this is doing so badly. It's in the right area. Anyone know?

 

[engo]

I noticed Paul Brunner director and ceo bought $1.7 million worth of BLY last week, but the share price is still getting smashed. So what do people think, time to buy or run for the hills?

 

[DowJones]

I noticed Paul Brunner director and ceo bought $1.7 million worth of BLY last week, but the share price is still getting smashed. So what do people think, time to buy or run for the hills?

I think its always been a BUY rating from many analysts from as far as I can remember, even when the SP was 2.40.

The only negative I can see is the debt to equity ratio, which stands at 300% +. In this debt sensitive market I think that doesnt sit well with investors.

Other good mining supports that have been smashed and have lower debt are Auscenco and Worley Parsons.