EHL - Emeco Holdings

[Pager]

Came across this stock as it has ASX options trading, was curious so had a look at it as it listed not long ago but the business is well established and it is a market leader in its field.

Its core business is Hiring, leasing, maintenance and sales of heavy plant equipment used by the mining industry, its operations are global and its market cap over $1B
With the current boom in the mining sector I would have thought there would be no shortage of business in the coming years but with no reliance on prices of commodities mined.

It was trading today around $1-67 or its lowest since listing, so I had a nibble .

Heres a link to their website:

http://www.emecoequipment.com/

Cheers

Pager

 

[nikkothescorpio]

Pager,

Seems an interesting lil company this one - their website is pretty hard to gather much from and als not much reading on them.

Do you or anyone else have any more thoughts on these guys?

They look to be down a tad from your buy in - but slowly moving back to pre-AUG levels....however were in a real downward trend prior to that.

Any thoughts?

 

[roland]

Pager,

Seems an interesting lil company this one - their website is pretty hard to gather much from and als not much reading on them.

Do you or anyone else have any more thoughts on these guys?

They look to be down a tad from your buy in - but slowly moving back to pre-AUG levels....however were in a real downward trend prior to that.

Any thoughts?

Hi, I have been in and out of EHL for a while now. I see them as a good long term holding. They are definately tied to the ups and downs of the mining markets - obviously, since they lease heavy earth moving machinery. KZL recently picked up some lease equipment for their mine expansion. Currently, my understanding is that EHL have supply problems with machinery and are moving equipment from Indonesia to AUS. Also they are currently having problems with getting tyres for their big stuff - world wide shortage.

Once these problems clear up, I reckon they will have good steady progress. They are also quite active in consuming other companies....

Hope that helps

 

[3 veiws of a secret]

Hi, I have been in and out of EHL for a while now. I see them as a good long term holding. They are definately tied to the ups and downs of the mining markets - obviously, since they lease heavy earth moving machinery. KZL recently picked up some lease equipment for their mine expansion. Currently, my understanding is that EHL have supply problems with machinery and are moving equipment from Indonesia to AUS. Also they are currently having problems with getting tyres for their big stuff - world wide shortage.

Once these problems clear up, I reckon they will have good steady progress. They are also quite active in consuming other companies....

Hope that helps

Hi
I too hold this share, possibly the 3rd trade has stuck with me ......I'm slightly sceptical on this share especially when it dropped to $ 1.70 some months back. There seems to be too many " If's ":hammer:

 

[Pager]

I’m still holding as I take the long term view, a little underwater but nothing to be concerned about.

They recently paid a dividend bringing total for the year to 2.5 cents FF with forecasts of increased earning s and dividends, have had a few problems as has been pointed out but there business is sound and there’s no shortage of work/leasing in the mining industry.

Maybe wont set the world on fire but most brokers who follow it have it valued at over $2, so 25% above were it is now at around $1-50.

For me it was a buy and hold for the long term, could have picked it up a lot cheaper but that’s the way it goes, sometimes your lucky sometimes your not, also bought Sonic Healthcare this year as a long term hold on the day it made its low for the year, swings and roundabouts come to mind!

Cheers

Pager

 

[TunaBum]

http://www.wabusinessnews.com.au/en-story/1/59891/US-hedge-fund-buys-into-Emeco-Great-Southern


US hedge fund buys into Emeco, Great Southern
11-January-08 by Mark Pownall


Funds associated with New York commodities hedge fund player Ospraie Management LLC have revealed substantial stakes in two major Western Australia companies both outside the group's previous purely mining focus in the state.

Today, the Australian Securities Exchange announced Ospraie funds had reached 5.15 per cent of so-called yellow goods provider Emeco Holdings Ltd, which is a machinery supplier to the minerals and contracting sectors.

Ospraie-related funds have more than 32 million shares, having started their buying in July with a 10.5 million share stake purchased at $1.90 per share.

Their last purchase was a block of 700,000 shares at $1 each made earlier this week, valuing the entire stake at $32.4 million.

Ospraie funds emerged as substantial shareholders in timber, horticulture and investment management group Great Southern Ltd on December 28 with a 5.4 per cent stake which has since been increased to 9.9 per cent, or 31.8 million shares worth close to $60 million.

The purchases are an apparent change from its previous focus in WA in direct minerals investments including Gunson Resources Ltd and Iluka Resources Ltd.

According to ASX notices Ospraie funds control more than 12 per cent of Iluka, holding 29 million shares currently worth about $135 million.

Ospraie is reputedly the world's biggest commodities hedge fund with a reported $7 billion under management.


Down under $1 this week. Anyone have any info or opinion IRO the above?

Pager you still have them?

TB

 

[TunaBum]

Back up today to $1.03. 7.3% improvement.

Any news on the supply problems Roland? Have they resolved to your knowledge?

TB

 

[Miner]

Back up today to $1.03. 7.3% improvement.

Any news on the supply problems Roland? Have they resolved to your knowledge?

TB

Huntley recommended it as BUY.
The share price is now at half of the price it raised the public float.

 

[Sainter]

Two ways to look at that-it is currently a bargain or the private equity mob that sold it overpriced it. It seems to me these PE mobs seem to be good at floating things that look fine, but the problems can quickly rise to the surface. Anyways, I hold EHL from $1.26, so more fool me, but clearly I now think it is a real bargain. Just in this environment I am reluctant to commit more moolah to it.
Cheers!

 

[kengaikl]

It's trading below P/NTA and its not like its going broke. Sooner or later people are going to see the value in this company

 

[Sainter]

I sold out of this @99c when the market had another little shake in late Jan. Limited my losses. Reports in the papers see management creditability being questioned by brokers, inc the one who helped float the company. Don't know if I'll bother to re-enter.

 

[Lucky_Country]

Seems to be a bit risky atm has never lived up too its promises with a cloud hanging over management.
Could retest lows

 

[agro]

just did an asx 300 volume search and had a look at EHL, have no idea what they do but there certainly is alot of 728 buys going through on the course of sales on Pro trade..

is this accumulation?

 

[korrupt_1]

up 11pc today. no news annocement? anyone know why its up?

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message is too short so i added this to take up room.

 

[reece55]

A leap out of the blocks today for Emeco Holdings, which is an undervalued play (in my humble opinion) that is in the equipment rental market area and is benefiting from the mining boom. The company has been a dog ever since listing on the ASX (thanks Macquarie!), but it's starting to look promising after a long period of what looks to be accumulation. With a strong yield and low valuation (although as with all equipment providers, the capital intensive nature of the business must be factored in), if it can break the $1.00 mark things are going to start to become interesting. One to look out for.

Cheers

 

[michael_selway]

A leap out of the blocks today for Emeco Holdings, which is an undervalued play (in my humble opinion) that is in the equipment rental market area and is benefiting from the mining boom. The company has been a dog ever since listing on the ASX (thanks Macquarie!), but it's starting to look promising after a long period of what looks to be accumulation. With a strong yield and low valuation (although as with all equipment providers, the capital intensive nature of the business must be factored in), if it can break the $1.00 mark things are going to start to become interesting. One to look out for.

Cheers

Hm its not bad

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 8.2 10.5 11.5 13.5
DPS 2.3 4.0 5.0 5.

Business Description
Emeco Holdings Limited (EHL) is involved in heavy earthmoving equipment rentals. The company is separated into 3 divisions: Rentals, Sales and Parts & Maintenance, with the majority of revenue coming from rentals. Emeco operates in Australia, Canada, Netherlands, Indonesia, and the USA.

thx

MS

 

[Miner]

Credit Suisse has stated it as BUY and outperformed.
What below it can go any way ?
It has been published in Western Australia today and surely many other places.

 

[Overreaction?]

I agree it was tradingat NTA about 1 - 2 months ago - which was a joke.

Its comparables trade on around 10-14x ebit (eg BKN) and this is around 8x. Leveraged to mining volumes - don't think they are going to fall even if commodity prices come off !

 

[NZTurtle]

Starting to gather a nice wee head of steam. Don't know if I run the same search patterns as a lot of people but managed to get filled at 115 this AM. Seems like there were a lot of others with the same idea today?

 

[silver715]

Hey, anyone knows what's happening to this stock? Seems that the price has been pushed down for no reason.....a potential takeover?

A lot of resistance by looking at the depth...