BLD - Boral Limited

[luutzu]

Roger Montgomery says Boral to be a big beneficiary of the infrastruce spending EXPECTED in tonight's 2018 Budget. Bit late to advantage of it now I guess, thought I'd post it anyway just in case it helps.

Now might not be late, but could be too early.

 

[BlindSquirrel]

Down 20% today! Market rockiness combined with a negative forecast on next year's earnings.
$4 is a mighty tempting price!

Ex dividend date is 30th of August for 13.5c.

 

[sptrawler]

Down 20% today! Market rockiness combined with a negative forecast on next year's earnings.
$4 is a mighty tempting price!

Ex dividend date is 30th of August for 13.5c.

It sounds as though the Federal Government, is going to start and roll out a stimulus package in October, so it may bode well for Boral.
I don't hold Boral.
https://www.smh.com.au/politics/fed...e-buybacks-and-dividends-20190825-p52kki.html
From the article:
Mr Frydenberg's speech will include a promise to make productivity an agenda item at the next meeting of state and federal treasurers in October. He will also reveal the government is actively considering which projects from its $100 billion 10-year program can be brought forward to stimulate the economy.

 

[bigdog]

still down 20%

 

[JTLP]

Can anyway tell me what Boral do now after they sold the brick business? Is it just building supplies?

 

[Garpal Gumnut]

Can anyway tell me what Boral do now after they sold the brick business? Is it just building supplies?

They do SFA.

In an environment where Infrastructure projects are coming on board by the $100m and one cannot travel more than 40k on a major highway in Australia without having to slow to 60kph or 40kph because of roadworks, BLD, Boral, (The Muppets) have been devalued today by 20%.

The so-called Institute of Company Directors needs to run a spelling test over Directors who can waste so much shareholder's capital in so short a time.

Muppets all of them.

gg

 

[So_Cynical]

Back to post GFC lows and it's not the same business it once was, much higher US earnings now - however if one believes that we are well into
a low growth phase that may last for decades then Boral isn't the sort of business that you want to own, under 4 bucks is crazy tempting though.
~

 

[bigdog]

ASX announcement late yesterday 5/12/2019 5:36:13 PM Boral's North American Windows business (uploaded)

The share price is currently down 5.69%

Late yesterday Boral announced that it has identified certain financial irregularities in its North American Windows business. This includes the misreporting of inventory levels and raw material and labour costs.

973

 

[bigdog]

ASX announcement 10/02/2020 8:54:31 AM Boral Update (uploaded below)

Share price currently down 10.49%

Update on Boral’s North American Windows business
The investigation determined that finance personnel within the Windows business manipulated
accounts and financial statements primarily to artificially inflate the overall profitability and health of
the Windows business. The investigation found no evidence that the manipulations were to hide
systematic theft of raw materials or finished goods inventory. The misconduct occurred over an
approximately 20-month period to the end of October 2019.

The employment of both the Vice President Finance and the Financial Controller in Windows have
been terminated

Impact on FY2020 and prior year results
Pre-tax earnings were overstated by a total of US$24.4 million between March 2018 and October
2019. This is in line with Boral’s preliminary estimated impact on earnings before interest, tax,
depreciation and amortisation (EBITDA) of ~US$20 million to US$30 million. In addition, legal and
associated investigation costs incurred in the first half are around US$1 million.

Update on 1H FY2020 Results and FY2020 Outlook Guidance
Boral’s Net Profit After Tax (NPAT) before significant items for the six months ended 31 December 2019 is $156 million, subject to completion of the auditor’s interim review.

Excluding the impact of the new IFRS leasing standard (AASB 16), Boral’s NPAT1 of $159 million is 18% below the restated 1H FY2019 NPAT1 of $192 million.

An interim dividend of 9.5 cents per share (50% franked) will be paid on 15 April 2020,
representing a payout ratio of 71%.

FY2020 Guidance and Outlook
Boral expects its FY2020 EBITDA to be down relative to FY2019, with lower reported EBITDA in all three divisions.

Together with higher depreciation charges, this translates to an expected NPAT1 range of around $320-$340 million for FY2020, which compares with a restated FY2019 NPAT of $420 million after adjusting for Windows misreporting.

An accounting scandal and five profit downgrades in 20 months gave Boral chair Kathryn Fagg no choice but to bring forward Mike Kane's retirement.

Boral has confirmed that the profit hit from an accounting scandal in its North American windows business will have the effect of wiping $US22.6 million from pre-tax earnings across the 2018 and 2019 financial years.

444

 

[BlindSquirrel]

sounds like a buying opportunity!

 

[The Grinch]

Good day for boral today, hope it keeps moving.

 

[Trav.]

Like a lot of stocks BLD's SP suffered over the last few trading days ( ~ -9% ) but finished strong on Friday and system has flagged it as a buy.

Just watching for pull back to be confirmed but with the recent government building bonus scheme announced I think that this company and others in the sector have a chance to continue some sort of a SP recovery

 

[Dona Ferentes]

There's a story on relative valuations; JHX versus the rest of the building sector. Based on views of a longer term investor. Not sure the market will reprice quickly, though.

https://www.sharecafe.com.au/2020/06/09/3-companies-showing-significant-value/

During May we have witnessed an extraordinary event in the space. For the first time ever, James Hardie’s (ASX:JHX) enterprise value (market cap + net debt) now equals the COMBINED enterprise value of its peers Boral, Fletcher Building, Adelaide Brighton and CSR. This is remarkable given as recently as Feb-19 these companies were twice the size of JHX. In 2008 these companies were almost 7x the size of JHX. These figures exclude the circa A$1.5b asbestos liability that James Hardie carries. Including this further inflates JHX’s value relative to the peer group by c12% ...

 

[peter2]

I'd dare say you would have been all over BLD's BO-HR @ 4.00 this morning @peter2.

A post to record that @debtfree noticed this BO-HR opportunity at the correct time.

 

[Dona Ferentes]

from Sandon Capital , an investor in Boral

During September, we made public a presentation that outlines our investment thesis for BLD. We argue that while most investor attention is focused on the sale of BLD’s underperforming US assets, the Australian businesses contain significant hidden value. We argue that the Australian constructions materials business, which includes aggregates used in making concrete, holds a unique and privileged position in its key markets which affords it the opportunity for pricing power.

In the past, we believe the company may have forsaken price for volume when it was unnecessary. We also highlighted the value of BLD’s property assets and its landfill royalty. These assets are of significant value and we believe the company should consider a functional separation of these assets with a view to ultimately demerging them at an appropriate time.

BLD has performed terribly in the past and is under pressure. A new CEO has taken the reins and the Board is changing. At the same time, the results of a portfolio review are due soon. Market consensus expects the review will announce a process to sell most of its US assets. We will be paying close attention to any comments made about pricing strategy and property/royalty assets.

 

[Dona Ferentes]

and now .... Seven makes a move.

(first one for new kids on the block : Barrenjoey Capital Partners is acting as financial adviser and Allens is acting as legal adviser to SGH in relation to the Offer. )

SGH today announces a $6.501 cash per share off-market takeover offer ("Offer") for all of the ordinary shares it does not own in Boral. The Offer will be made by Network Investment Holdings Pty Limited, a wholly owned subsidiary of SGH. SGH currently has an interest in approximately 23.18%2 of Boral. Given that its interest exceeds 20% and that it has recently utilised its "creep" capacity by acquiring an additional 3% interest, SGH is currently restricted from acquiring further Boral shares on market at this time. As a result, SGH is making a takeover offer to all shareholders. In making the offer, SGH is seeking to increase its interest in Boral and would be satisfied for the Offer to result in it holding a total interest of around 30% of Boral.

The market didn't shift the BLD price .... still $6.50. This may flush out some nervous nellies

 

[sptrawler]

and now .... Seven makes a move.

(first one for new kids on the block : Barrenjoey Capital Partners is acting as financial adviser and Allens is acting as legal adviser to SGH in relation to the Offer. )

SGH today announces a $6.501 cash per share off-market takeover offer ("Offer") for all of the ordinary shares it does not own in Boral. The Offer will be made by Network Investment Holdings Pty Limited, a wholly owned subsidiary of SGH. SGH currently has an interest in approximately 23.18%2 of Boral. Given that its interest exceeds 20% and that it has recently utilised its "creep" capacity by acquiring an additional 3% interest, SGH is currently restricted from acquiring further Boral shares on market at this time. As a result, SGH is making a takeover offer to all shareholders. In making the offer, SGH is seeking to increase its interest in Boral and would be satisfied for the Offer to result in it holding a total interest of around 30% of Boral.

The market didn't shift the BLD price .... still $6.50. This may flush out some nervous nellies

Seven can't do a worse job of running Boral, than their management has over the years, I owned them a long, long time ago and gave up on them. They sit slightly above AMP and slightly below STO, in my worse shares ever portfolio. ?

 

[Flam]

Hi Folks,



Boral have been undervalued for some time. It’s just crazy that they’ve languished around $6 for most of the year since the recovery. I don't know if anybody seen Alan Kohler's assessment of Boral last year. He pointed to the value in their property portfolio and the strength they have in the stranglehold position on Australian construction industry resources. His opinion is an opinion that I fully agree with. Though I think Kohler’s valuation is far under the actual value of Boral shares, at least if Boral keep the company's existing assets, and start developing those assets, I believe it’s Boral to $12. I’ll explain that in a bit. It's in the Boral Board's interest not to offer an upper value of the shares, it'd only be used as a stick to beat themselves with, and they are not hawking themselves looking for an investor.

The only way is UP for Boral but... The share price doesn't reflect the value, why? last year’s Covid bump notwithstanding, Boral have had some crap going on and the new CEO is already dumping non-performing debris. Both Boral and Stokes have undervalued the stock, and Boral's $8.25 to $9.40 is also a croc. Stokes has now made a second low ball (not bullish but Bullsh*t) offer of $7.40 with perks, Ha, what a joke. Pretty much the low-ball offer of the year.



If he gets away with it Stokes will buy the company for a song, separate out the property portfolio and sell on a much less valuable company. If Stokes offered $9 a share it would be a fair offer, and one that shareholders should consider, but 7.40 is a joke, even 8.40 is a low ball. That he's offering 7.40 now where he previously offered 6.40 shows he'll low ball his way to a win. Like that guy who just hopes if he asks enough the girl will give in and go on date.

That said....Having withheld the interim dividend payment Boral need to offer shareholders something real. Boral's CEO needs to show his hand around the dividend, explaining Boral's intention re a fully franked dividend. Boral have had a 3.6 billion injection and they can offer share dividends at $0.15 - $0.20 fully franked. It's affordable and it would push shares to a better, real valuation of $8.50 to $9.20, something the Boral Board should consider lest they want to be on the end of a shareholder revolt, and a protest sale. Fending off Stokes’ insulting and cheap low-ball offer might be easy for now, but that might not continue. A strong dividend action would secure the full support of shareholders going forward.

 

[Dona Ferentes]

Kerry Stokes will pay $7.40 for Boral shares after acquiring 34.5 per cent of the building products supplier, and analysts say he'll eventually take full control of the company.

 

[Tommy Shelby]

I sold out at $7.33 but now I'm wondering if it's worth going back in now that it's pulled back to $6

SVW holds 70% of BLD but can't see anything about them acquiring the entire company though I'm sure I'm missing something.