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BXB - Brambles Industries

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I was interested enough to go on the plastic pallet's website and check out their systems. Agree that they do look nice and will eventually earn their share in the market. They do have high barriers to overcome so the decline of CHEP will not be overnight.

1% revenue was based on the newspaper article. If there are more customer defections then the SP will face a nice smack down.

So what do you know, ROE?
 

Plastic Pallet has higher cost but it has all the other benefits that will in the long run beat wooden pallets.

they can go through a lot more trips before it make any serious damage to the pallet, wooden maybe 6-10 trips and it need repair.

Water resistance, so can store in and out and every where really without too much damage done to it.

100% recycle and if they play the environment card, wooden pallet lose out.

Transport cost
http://www.plasticpallets.com.au/timbervsplastic.html
Granted this website figure is a little high and maybe bias as well but regardless of the figure the price tag will be higher because wooden pallet is at least 30% heavier.

from iGPS site, if you are a renter like Pepsi the rental price are similar to
Wooden pallet and I assume they compare it to Brambles and the generic white pallets... so I ask myself a question, why wouldn't I use these plastic pallets if it cost the same for my business, and they can brag on about their environmental bull**** that they are a responsible corporate citizen for Free

etc... etc.... too long to post on forum.

that is my understanding of it and I could be wrong but I based my decision on my research and if I am wrong then I am wrong I don't blame anyone for mis-information, so you should do the same.

Granted these players are smaller than Brambles but I see it has attack brambles core fundamental structure and like Uncle Phil from common stocks uncommon profits when the core of the business landscape change
you should be looking at it closely whether you want to hold the stock or not.

And I am not all gloomy on Brambles just yet, they still have time to counter this threat with a price war and come up with the same product and knock them dead before they getting too big.

so haven't given up on Brambles and continue monitor and research on the 2 and if the management is doing nothing in the next few years well we can say alot about its management ...
and that should keep me away
 

also remember that pallet are capital black hole, you lose the customer you not only lose revenue you may need to get rid excess pallets and it cost money and then one day you have to make it again for new customers....

at $20US (figure from their presentation recently when I did research on it a few weeks ago) a pop it's not cheap ...

don't believe the 1% figure market it has far more damage than that..look at Walmart debacle.

PS: no announcement from bxb on the contract lost either, i don't like it already.. .
where is honest management coping it up or these guys putting the announcement through a day spin doctor before it comes to the market
 
Thanks for the information, ROE. I was under the impression that you know something else that nobody knows. Like perhaps you are the global head of logistics for Coca Cola or something like that .

I agree with your analysis, the threat to BXB is real. Although it is about a lot more than just the pallet, the entire system is what BXB has built and can still leverage if their management get a move on. Let's see how this play out.

On a separate note... BXB bounced back up by ~4.5% today.
 
Hey guys,

I thought I'd post my two cents worth here.

Firstly let me warn you that I am a futures trader and my most heavily traded instrument is the SPI200. Secondly, I dont know much about stocks but still trade them everynow and then.

I bought into this stock and Macquarie right around when the market was 3100, (BXB at 4.70, and MQG at 15.50) and there were some pretty big differences on tape. I sold MQG at $26 the other day and BXB at $5.25. Percentage wise thats a massive difference, one killed the market over this few week period, the other one got killed.

BXB seems to be weak, despite mass euphoria and people buying everything.

Ive been a favourite of BXB for a while, and traded them when the Toll and Aciano business was still going around, but there is a lot of weakness, so my assumption is that someone has been moving the stock from the inside or someone that is wealthy and knows something. That big one day drop was odd a few weeks back.

I'm shorting the market on my SPI trades, so naturally I am in cash, but i am not going to go back into when the market retests the lows posted in early March, however long we will have to wait for that.

Hope this helps some puzzle lover out there.

Cheers,
Ivan
 
I am not a holder of Brambles, I was in some years ago ... I just visited the igps site, and Brambles will imho need to respond, especially since the pepsico decision. Would Brambles try and buyout this Outfit? or will they try and produce a similar type pallet to counter igps? Peoples thoughts on this question would be most helpful.
 
hi guys,

is there any site that would allow me to track share price movements of brambles according to announcements and performance? in one summary format?

any info would be greatly appreciated.
thanks.
 
Many of my mates have been in Brambles from time to time.

I may have a punt with a stop loss at $7

Aint a recovery a great opportunity.

gg
 

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I'd be interested to know peoples thoughts on this stock. I am a low-level holder of the stock, mainly because I wanted a fairly solid stock and the growth over the past year has been impressive. Does anyone have an opinion on whether this stock will head north?
 
http://www.thebull.com.au/premium/a/47134-18-share-tips---7-july-2014.html

Hi Letts,

In the absence of any more informed opinions, I thought I'd post the above. It certainly has been on a tear this year and the recent dip has me wondering if it may be a good time to buy.
 
Gosh, no one cares about this one anymore!

Brambles' $3.5b asset sale, buyback, boost shares

Brambles has agreed to sell its reusable plastic container business to a unit of Abu Dhabi wealth fund for over $US2.51 billion ($3.51 billion), earmarking most of the proceeds for a buyback and sending its stock sharply higher.

From the $US2.36 billion that the company expects in proceeds, it plans to return up to $US1.95 billion to shareholders. Its shares hit a two-year high at the open of trade, gaining as much as 8.1 per cent, while the broader market rose 0.2 per cent. More....

....and an EquiVolume chart just to show there are no big volumes getting ready to slam the price back down. It has one last gap to fill and then the double top at around 13.50. After that it is blue skies.

 
Ann said:
....and an EquiVolume chart just to show there are no big volumes getting ready to slam the price back down. It has one last gap to fill and then the double top at around 13.50. After that it is blue skies.
Click to expand...
The gap is now filled with a spike not long after your post. So that leaves the previous top not far away.
 
Smurf1976 said:
The gap is now filled with a spike not long after your post. So that leaves the previous top not far away.
Click to expand...
Gap still to be filled after the spike at around 12.25. Again an EquiVolume chart.

 
Brambles would be a net beneficiary of the current situation in terms of activity but, despite demand soaring to record levels, Brambles has trimmed sales and earnings guidance slightly.

Some 80% of the biz is moving consumer goods around. The consumer staples sector has seen record levels of pallet demand across grocery supply chains. However the the increase in demand and changes to network flows created by COVID-19 “have driven short-term increases in supply chain costs” that are eating into margins to an extent.

It is being hit by the shutdown of the automotive and hospitality industries; a stop on beer deliveries means Brambles' Kegstar business is struggling.

 
I entered BXB today after the afternoon scan came up with a buy.

- CAM Pull Back signal
- Trending up nicely
- Short term resistance @ $11.78

 
I sold out of brambles 100 years ago when they couldnt find their pallets.
Thanks for putting them back on my radar.
 
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