BDL - Brandrill Limited

[stumpythefish]

Well BDL has risen about 40 percent the last week. With no announcment and a huge buying side relative to sellers it looks to sore again today.

Is no one interested in this forum on this stock? Not much conversation about it compared to other sites who are getting very excited about it.

My charts for this look fantastic!

 

[roofa]

Well BDL has risen about 40 percent the last week. With no announcment and a huge buying side relative to sellers it looks to sore again today.

Is no one interested in this forum on this stock? Not much conversation about it compared to other sites who are getting very excited about it.

My charts for this look fantastic!

I'm excited Stumpy, what are the other sites you refer too?
Brandrill is up over 50% this month with solid volume the past week.

 

[roofa]

Gee they were quick to get rid of that post Stumpy, just so happens I was having a look when your post came through.

I have built a reasonable position in this stock since October 08 through to July 09 with over 30 contract notes so I do appreciate any information in BDL.

Cheers Stumpy.

 

[stumpythefish]

I'm excited Stumpy, what are the other sites you refer too?
Brandrill is up over 50% this month with solid volume the past week.

haha! great to see someone is with me on this one!

I cant post other forums names here but hopefully this thread will pick up more on it too. AusStockForum people need to be aware of BDL.

 

[roofa]

Fair enough, I should not have asked but I'm onto it in any case.

Best estimate opening price increase I've seen for BDL to date.

 

[Donga]

Hey I'm still with you, just wish I'd bought more . A lot of miners strutting their stuff lately and maybe I'm spread too thin. Anyway, glad to see BLY also continues to power, which has been my main game for a while. There is no activity on that thread as well. The popular threads seem to be chart interpretations or spruiking that we're heading for a big correction. Holding BDL at 0.55 and like BLY in for the long haul.

 

[Joe Blow]

A lot of discussion about price movement in this thread but not much discussion about the company, their projects or their fundamentals.

Stumpy, as the head BDL cheerleader, perhaps you could provide some information about this company's fundamentals. Why has the price risen around 40% in the past week? Is the market expecting an announcement?

If you want to get some more detailed discussion going then post some content that has the potential to generate some.

 

[Donga]

For me a punt on basis of:

1. looking for undervalued stocks, those that have not yet benefited from my strong conviction the wrost is over and no where is that being payed out more than mining.
2. BDL is used to making money was expanding before GFC
3. PE ratio at 2.4
4. high of 38c late 2007 so I bought in at 5.5c

Have no charts, but confident the miners are back on a roll and that suits BDL

 

[stumpythefish]

My reasons for a punt:

1. Last announcement talked about a delay of projects which should be beginning soon.

2. BDL's recent capital raising announcement notes the need to purchase equipment. This is not something BDL would do if there were not new contracts of magnitude coming up.

3. Their website has been advertising new jobs the last few weeks suggesting the 600+ employees they have are fully utilised. another bullish sign.

4. Something must have prompted Director buying a few months ago at its lowest price.

5. Energy industry projects are starting to progress again.

6. Takeover potential.

7.ASL, BLY having a great recovery and BDL is yet to regain from lows.

8. twice to three times the amount of buyers than sellers.

9. A rise of 45% last few weeks without an announcments and many large confident buys indicates people are expecting (or know) of some good news. It has been more than just a traders run - lots of substatial buys.

10. Nice looking charts.

11. The SP looks low if one can assume a growing order book.

12. Im happy that I got in early and have almost doubled my stake on the above factors. What happens now is any bodies guess so DO YOUR OWN RESEARCH!

 

[stumpythefish]

Taken from Brandrill job postings on seek:

"Brandrill Limited is one of the largest and most respected drill and blast companies in Australia specialising in Mining and Civil Excavation. We have a workforce of over 600 people and a fleet of over 90 surface drill rigs actively employed in contracts around Australia.

Due to solid contracts in mining and civil works we are now seeking expressions of interest from Perth based people of Aboriginal or Torres Strait Island heritage for the following positions:

LABOURER / SAMPLERS

DRILLERS OFFSIDERS

SHOTFIRERS ASSISTANTS

WATER CART DRIVERS

TRAINEE DRILLERS

EXPERIENCED DRILLERS OR SHOTFIRERS etc...

 

[stumpythefish]

Interesting to see there is now trading halt.

Also, ASL has just announced a trading halt today. Possible T.O.?

Good luck to those that bought in recently

 

[Donga]

Yeah, also trading halt for BLY. So one way or another looks like an interesting couple of days ahead for these mining support companies. As doom and gloom was lifting these guys with their high debt became more attractive as miners recovered. They got seriously wacked and might yet recover to half their pre bust highs. As always, in for the long haul with both at .055 for BDL and .225 for BLY and my research is basic so pls DYOR .

 

[Donga]

Hey Stumpy - you got it and the takeover is providing easy pickings, with the value to BDL holders of 9.5c pr share. Thanks guys including Roofa for bringing this one to light

 

[YELNATS]

Due to solid contracts in mining and civil works we are now seeking expressions of interest from Perth based people of Aboriginal or Torres Strait Island heritage for the following positions:

..

Seems a bit strange. Is this a piece of positive (or negative) discrimination?

Also, BDL is currently trading well under the 9.5 cents value of the merger with Ausdrill. Is this an indication that the market is factoring in the possibility that the merger may not go ahead?

 

[stumpythefish]

Seems a bit strange. Is this a piece of positive (or negative) discrimination?

Also, BDL is currently trading well under the 9.5 cents value of the merger with Ausdrill. Is this an indication that the market is factoring in the possibility that the merger may not go ahead?

Well theres always the risk. Im out now at 8.5 as Im more than happy with my profit and I dont need to wait untill 9.5.

Cheers

 

[roofa]

Hey Stumpy - you got it and the takeover is providing easy pickings, with the value to BDL holders of 9.5c pr share. Thanks guys including Roofa for bringing this one to light

No worries Donga, good luck to you mate on the timing of your entry into BDL.
Same to you Stumpy on your exit.

 

[Donga]

Guys - You might cast a bleary eye over todays BLY announcement and note you may have the opportunity to buy in for a day to get on the entitlement list for their restructure. I don't have enough experience to forecast how the market will react in the days after the entitlement date but you may find from your own research that it could be attractive :dunno:

 

[samgribbles]

BDL business:
- D&B in iron ore
- D&B in coal
- D&B in civil works (higher margin)
- DT Hi Load (picking up)

Coal and iron ore volumes are picking up => positive for BDL
BDL have just won a big civil job => pick up in profit as high margin work
DT HiLoad should theoretically pick up more business as mining companies seek to reduce operating costs

BDL were in a world of the proverbial with high leverage and reduced revenue - were struggling to pay the equipment finance. But with mining volumes picking up so too should BDL. Should China and world demand prove to be more than restocking the BDL share price should appreciate substantially, at a much greater rate than the ASL price will.

Why such a large SP increase? BDL was on such a very very low multiple it didnt take much.

The merger? An easy way out. management feels like they've failed, had enough, see a white knight. Who inititated the negotiation with ASL I'd like to know.

Merger must be close to net asset backing of BDL (replacement value of rigs). There's a lot of upside potential in the DT HiLoad business which they picked up for a very good price.

Merger is a soft option.

From an ex-Top20 holder. Still hold, but only a little.

 

[roofa]

BDL business:
- D&B in iron ore
- D&B in coal
- D&B in civil works (higher margin)
- DT Hi Load (picking up)

Coal and iron ore volumes are picking up => positive for BDL
BDL have just won a big civil job => pick up in profit as high margin work
DT HiLoad should theoretically pick up more business as mining companies seek to reduce operating costs

BDL were in a world of the proverbial with high leverage and reduced revenue - were struggling to pay the equipment finance. But with mining volumes picking up so too should BDL. Should China and world demand prove to be more than restocking the BDL share price should appreciate substantially, at a much greater rate than the ASL price will.

Why such a large SP increase? BDL was on such a very very low multiple it didnt take much.

The merger? An easy way out. management feels like they've failed, had enough, see a white knight. Who inititated the negotiation with ASL I'd like to know.

Merger must be close to net asset backing of BDL (replacement value of rigs). There's a lot of upside potential in the DT HiLoad business which they picked up for a very good price.

Merger is a soft option.

From an ex-Top20 holder. Still hold, but only a little.

I agree with your comments with regards to the SP having a greater upside going it alone in the short term.
But if management feel the soft option is easier for them then perhaps it will be for the best, especially if ASL can keep the dividend up around the same levels as last FY.