BOL - Boom Logistics

[dj_420]

The Age had a picture of floods up in Queensland with a Boom Logistics crane under water.


I am no scientist, but the market has priced a number of stocks like this.

Look at BOL, AFG, AIO.

A few stocks that were trading on really high yields.

Downgrade coming I suspect.

Yeah I saw the nice aerial shot of that and wondered to myself whose crane that was! Lol

BOL have been in a steady downtrend for quite sometime now. IMO only some sort of stability in weather will see the sp stabilise and then begin to appreciate again.

 

[rgdk]

I have had my eye on this one for a while and have watched it become progressively 'better and better' value as shareholder value gets progressively worse and worse. Yet no announcements...

But finally today... a trading halt. My gut feeling is bad news.... but if it is a similar profit downgrade to Emeco, it may provide a buying opportunity (contingent on the company's ongoing viability) as the share price already must have a whopping great downgrade already priced in to have dropped the amount it has, yet you know it will be dumped to a way oversold position at the first confirmation of trouble.

 

[Jimminy]

Rgdk,

They wouldn't need to go into a 3 day trading halt to release their half yearly.

It couldn't be THAT bad....

My money is on a further acquisition.

 

[Scuba]

The Age had a picture of floods up in Queensland with a Boom Logistics crane under water.
***edited for brevity***

Yeah I saw the nice aerial shot of that and wondered to myself whose crane that was! Lol
***edited for brevity***

Guys, can you remember the byline/storyname or post a link from history list in browser, would love a chance to see the article...
with regards,
Scuba

 

[bazollie]

Guys, can you remeber the byline/storyname or post a link from history list in browser, would love a chance to see the article...
with regards,
Scuba

G'day Scuba , the pictures that are circulating are actually of a boom from Ensham Mine's Dragline. ( 1 of 4 they have on sight) A second hand dragline these days is worth up to $100M plus the cost of getting over from the U.S. & ther re-assembly of the machine.

I am lead to believe that Boom have a crane adjacent to this Dragline on the ground, reported to be a 300t Crane? I have also heard that there is at least 1 semi-trailer with counterweights for this 300t crane to be loaded onto it. Again I have been told that there is also another crane somewhat smaller, which was to unload the counterweights & then fix these counterweights to the big crane.

I haven't had this all confirmed, but I have been told by a number of different people associated with the Coal Mine Industry. I guess once the water is pumped out of the Pit , all will become a lot clearer!

Regards

Bazzolie

 

[Jimminy]

Rgdk,

They wouldn't need to go into a 3 day trading halt to release their half yearly.

It couldn't be THAT bad....

My money is on a further acquisition.

Can I take that back!?

CEO has resigned -announcement out after close. However there is another announcement yet to come before trading halt ends. Ouch!

Yes, it could be THAT bad.

 

[Rainmaker2000]

Gees, there are some dangerous stocks around at moment........Boom has been quite a popular emerging business and now it appears there are some very nasty things hanging in the closet......it's the worst scrouge on investing.......insiders selling out driving the price down on information which much of the market does not have..the majority are not even investigated by the 'watchdogs'..I feel for anyone who owns these guys from $4ish as not much has been released operationally to justify this slide.....I would not be touching this situation

 

[Scuba]

G'day Scuba , the pictures that are circulating are actually of a boom from Ensham Mine's Dragline. ( 1 of 4 they have on sight) A second hand dragline these days is worth up to $100M plus the cost of getting over from the U.S. & ther re-assembly of the machine.

I am lead to believe that Boom have a crane adjacent to this Dragline on the ground, reported to be a 300t Crane? I have also heard that there is at least 1 semi-trailer with counterweights for this 300t crane to be loaded onto it. Again I have been told that there is also another crane somewhat smaller, which was to unload the counterweights & then fix these counterweights to the big crane.

I haven't had this all confirmed, but I have been told by a number of different people associated with the Coal Mine Industry. I guess once the water is pumped out of the Pit , all will become a lot clearer!

Regards

Bazzolie

Sounds like it could be a superlift to me... 2 x lattice booms plus additional counterweight for lifting maximum lift capacity? (Who knows, that's why I was hoping someone could post a link or show me a picture...)
Regards,
Scuba

 

[Jimminy]

insiders selling out driving the price down on information which much of the market does not have..the majority are not even investigated by the 'watchdogs'..I feel for anyone who owns these guys from $4ish as not much has been released operationally to justify this slide.....I would not be touching this situation

Not wrong - I traded this sucessfully a few times whilst it was in the 2.60 - 3.10 range....Sold out at 2.95 and have watched it fall, constantly droppping my buy price as it approached it.

Don't even have a buy in now but continue to watch the stock daily.

It has certainly been insider knowledge for quite some time now.

 

[tronic72]

I tend to agree that BOL is on shaky ground at the moment (pardon the pun).

One would expect that BOL would have insurance for these sorts of natural disasters. Can anyone confirm this?

Shame they aren't providing the market with more information as it's impossible to judge how they are currently tracking.

I do think that many stocks are being hammered on speculation.

 

[Judd]

Again, it could be that old bug bear of capital intensive companies. Debt. Seems its debt to equity ratio is 80%. That's some interest to pay in this fragile economic climate.

 

[Jimminy]

Again, it could be that old bug bear of capital intensive companies. Debt. Seems its debt to equity ratio is 80%. That's some interest to pay in this fragile economic climate.

I think their cash flow (previous) comfortably covers the debt....

I don't think it will be debt....just that a strategic review will be required and that their profit guidance from last year will be again downgraded.

What a fall from grace. Some large holders has done some big money on this stock. The Holt family (based in Toowoomba) who sold Holts cranes into Boom at the IPO for $0.80c had 10m shares....records shows that they still have over 4m of these. Ouch.

 

[BuyandHold]

See link for article on Ensham and its flooded mine.

http://www.miningitv.com/stories/35669,1143-17127,48898.html

Another link with pictures.

http://www.abc.net.au/capricornia/stories/s2144038.htm?backyard

I imagine Ensham would be liable for any capital and income loss associated with the crane.

 

[Buffettology]

Preliminary half yearly figures released, worse than expected, but share price shot up 17%.

Expectations must have been that half yearly profits were going to be far worse than expected!

Sorry, a lot of "expected" in there, but that seems to be what is really driving this stock at the moment!

 

[brendan87]

I think today has dragged all the skeletons out of the closet for BOL.

- We had the much anticipated profit downgrade, which wasn't *that* bad. This has removed alot of uncertainty that has been weighing on the stock.

- The accounting changes were not too much of a surprise given alot of analysts doubted BOL's depreciation figures anyway - although the amount of adjustment was quite large given the adjustments were allegedly only to 4% of BOL's assets.

- We had clarification of the effect of the QLD floods and an all-inclusive hard profit target for the full year. This was unlike the previous guidance for a 'stronger' second half, with no digits.

- Re-assurance on funding position (despite disclosure in the FY06-07 report being adequate)

Although I have tried to pick the bottom from this dog many times since its fall from grace (and been wrong, and piad dearly for it) - I'm going to put it out there that the long slide in BOL's SP has bottomed today at 0.955

Today's announcement answers alot of questions, resolves some key issues that have been lingering in the minds of investors and seems to (hopefully) point to greater transparency and communication. In my opinion, this has been a big lesson in how there is a huge monetary cost to *uncertainty* and that failing to be up-front and transparent with shareholders has cost the SP far more than if managment had responded faster to market speculation rather than waiting for an ASX Price Query before keeping shareholders informed. I very much understand why shareholders lost so much faith in BOL following the Query - I thought it showed great disrespect to already hard-done-by shareholders in BOL.

Despite my gut feeling (which is more often wrong that right ), I am not going to make the same mistake again and throw good money after bad! BOL is the big dog of my portfolio and I will hold on to my losses for the medium term. Although the road to recovery will be long and investor condfidence painstaking to win back (as the board fully deserves), I think the business still has alot of potential and the external conditions are good for it. Anyone else looking forward to new management?

 

[Rainmaker2000]

I think people like certainty......specially with a spiralling share price.......thing is though, that is earning per share of about 9 cents for the half which places BOL on a very low PE.........people must think there is more bad news to come....

 

[Jimminy]

yes I think they announced what most had expected....we all new it was coming and it wasn't worse than expected which satisfies the market.

Certainly better opportunities in the short-medium term than this stock - unless of course you are carrying losses, which can still be good depending upon your personal position.

I think this might go lower as I wouldn't really want to buy in with profit guidance like that.

 

[Libretto]

Does anybody have an idea on what the dividend wil be this half?

Also when will they announce the ex-date?

 

[Jimminy]

anyone got a life raft - this stock has been under without air for some time, I think it might have cardiac arrest shortly and die!!

76.5c ouch - hope there is no one holding this.

 

[dj_420]

anyone got a life raft - this stock has been under without air for some time, I think it might have cardiac arrest shortly and die!!

76.5c ouch - hope there is no one holding this.

Not holding but looking for a confirmed trend change and then Ill be keen to jump on board. As long as profits havent been completely ruined by storms then looks oversold.