Australian (ASX) Stock Market Forum

EHL - Emeco Holdings

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EHL reASF 2019-12-21.png

Friday's Low was just slightly lower than the Low of Dec. 6th (and could be taken as a double Low).
The Volume on Friday was just shy of 7 times the Volume on Dec 6th, a total rejection of the earlier Low with the Close within 1¢ of the days High and 8¢ short of the 30 day High [HHV(H30)].
 
Nice observation @rnr . Another possible turnaround company it seems. However the real turnaround happened in 2016 and lead to a massive price rise from 0.30 to 4.00 in two years. I should post a chart that includes that great bull run because it shows that the current sideways trading range is in the middle of that move up. This should ring a bell to those who consider the 50-62% pull-back zone as a buy zone. It's in my weekly BO list.

btw: Nobody included EML in their CY 2020 selections.

ehl0501.PNG
 
Six ASX announcements today
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(a) Emeco has today made an announcement to the ASX about its proposed acquisition of Pit N Portal and proposed capital raising comprising an accelerated non-renounceable entitlement offer of ordinary shares on a pro rata basis to existing shareholders (Entitlement Offer);

(b) Emeco requests that the trading halt last until the earlier of Emeco making an announcement to the market about the completion of the institutional component of the Entitlement Offer, and the commencement of trading on 31 January 2020.

706
 
Well, we'll see what the insto's think of the capital raise at 2.07 when EHL resumes trading. If they think the deal is a good one then price should not trade at 2.07.
 
peter2 said:
Well, we'll see what the insto's think of the capital raise at 2.07 when EHL resumes trading. If they think the deal is a good one then price should not trade at 2.07.
Click to expand...

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ASX retail announcement made today
5/02/2020 8:32:35 AM Retail entitlement offer

upload_2020-2-5_10-39-27.png


Letter to eligible shareholders (uploaded)
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I hold

845
 

Attachments

  • EHL Letter to eligible shareholders .pdf
    56.8 KB · Views: 24
EHL, Emeco has been a very disappointing investment. The share price has been on a downer for years. You'd think with all the mining activity this company would have to be a go'er. I'm aware that the company has made some changes and one interesting acquisition (Pit N Portal). This allows them to provide both open cut and underground mining services. I realise that this is a capital intense business and mgt seems to be reducing their debt level slowly.

I don't know. EHL has been very disappointing. I'm going to throw it in the reversal watch list to keep an eye on it. Maybe one day there will be a reversal pattern for me. Not worth posting a chart yet.
 
EHL did form a reversal pattern but I didn't take the opportunity then. The pattern I'm referring to is the high volume bullish bar (HVBB) that formed in early Nov20 (weekly chart). Some of you will recognise it as a "pocket pivot".

Price has been going sideways with the market recently and I've decided to buy some today. Naturally I'd like to see price continue higher immediately. There's plenty of room to get back to the old highs >2.00. This makes the RR acceptable.

ehl2701.PNG



Edit : Due to report HY21 Tues Feb 9th, 2021.
 
peter2 said:
EHL did form a reversal pattern but I didn't take the opportunity then. The pattern I'm referring to is the high volume bullish bar (HVBB) that formed in early Nov20 (weekly chart). Some of you will recognise it as a "pocket pivot".

Price has been going sideways with the market recently and I've decided to buy some today. Naturally I'd like to see price continue higher immediately. There's plenty of room to get back to the old highs >2.00. This makes the RR acceptable.

View attachment 119132


Edit : Due to report HY21 Tues Feb 9th, 2021.
Click to expand...
Excellent Analysis Pete. Nov appears to be the turnaround month for EHL.

If no one has opted, I would like to put EHL for Feb tipping :)
 
While enjoying red wine after a lovely Sunday lunch prepared by lovely wife I have some wildest thoughts:
  1. Could EHL throw another take over bid. Could that be Austin ANG. The synergy is fantastic. ANG is gradually turning around. EHL requires such services and with ANG into its wing, it can serve others as well their own fleet - Value proposition.
  2. Could MAH throw a take over bid for EHL or ANG ? Again a vertical integration with leverage.
Do hold EHL but sold out few months back ANG and MAH. Time to review after hearing from other posters on my not sober thoughts.
 
EHL is currently trading on a PE of around 6, based on the guidance provided in November and would appear cheap on any metric. With the increased revenues forecast, the share price could double in the next year and they would still be trading on a PE of under 10.

The intergration of Pick & Portal has gone well by all reports and has been positive for increased earnings. The Pick & Portal takeover together with recent contract wins has also diversified them from reliance on coal and into greater earnings from metals and iron ore.
The execution generally by management over the last year has been good.

The capital raise in Aug/ Sept last year knocked the wind out of the share price recovery, however, it proved to be a good entry point and the share price has recommenced its climb back up since the release of the half year guidance in November.

As to a takeover, with the 3 largest shareholders controlling 60% of the company, it would need their support for an offer to have any chance of success.
 
Beaches said:
EHL is currently trading on a PE of around 6, based on the guidance provided in November and would appear cheap on any metric. With the increased revenues forecast, the share price could double in the next year and they would still be trading on a PE of under 10.

The intergration of Pick & Portal has gone well by all reports and has been positive for increased earnings. The Pick & Portal takeover together with recent contract wins has also diversified them from reliance on coal and into greater earnings from metals and iron ore.
The execution generally by management over the last year has been good.

The capital raise in Aug/ Sept last year knocked the wind out of the share price recovery, however, it proved to be a good entry point and the share price has recommenced its climb back up since the release of the half year guidance in November.

As to a takeover, with the 3 largest shareholders controlling 60% of the company, it would need their support for an offer to have any chance of success.
Click to expand...
EHL published HY result.
Directors said excellent.
Market slapped with 10 pc reduction.
PE came down further
 
Im thinking the retail holders are having trouble reconciling the operating profit to the statutoiry profit and have decided the results are dissapointing (which they are not).
Will be interesting to see what the share price does over the next 2 weeks as the analysts and institutions consider the results.
 
The December half year result for EHL was good, although the market punished them. Additionally, there has been some concern that rising wages and costs for mining services companies would put pressure on their margins. Notwithstanding these concerns, there has been no guidance revisions from EHL, or similar companies to give any weight to these concerns and I suspect they have the cost increases contained, at least in the short term.

I'm expecting another good result for EHL and wondering if the recent rise in the share price is due to the full year financials leaking. Senior management would have a pretty good idea about the results for this year by now.

EHL.png
 
68c
A flat pre-June 30 trading update came from heavy equipment group, Emeco Holdings (ASX: EHL), which told a Perth investment conference on Thursday it had narrowed the 2022-23 guidance for its key metric operating EBITDA to a range not that much different to the actual result in 2021-22.

It told the investment conference and the ASX on Thursday that it was now looking for a pre-everything (EBITDA) result in the range of $248 million to $252 million, almost on par with the $250 million a year ago.

The 2022 result was a little down on guidance for that year of $245 million to $260 million, so in effect EHL will have had two years of marking time.

That is despite what was described as a solid trading experience.

“Demand for our equipment and services has driven strong half on half earnings growth,” the company said in the presentation and update

“New and expansion projects secured during the period will drive strong momentum going into FY24” and “Revenue mix continues to evolve as we increase the number of fully maintained projects, adding tenure to the portfolio, creating value for our customers and differentiating our capability from our competitors.”

The company said it also saw strong demand for its workshop services as well and a solid turnaround in other businesses.

Overall, directors said the company saw a “solid H2 margin performance, with focus on repricing, equipment deployment and business improvement, to mitigate cost inflation (labour and parts).”

Capital spending will end up at the lower end of the forecast range of $155 million to $160 million.

.....
Emeco supplies the mining and construction sectors with a mix of equipment types, carries out maintenance, repairs and builds to order.
 
Bought 5,000 EHL @ 0.625

Decided this was worth an entry position since it is trading at significantly less its book value which was 1.14 at eoy fy23.
My blurry picture fwiw is they do interesting stuff with workshops set up at mining and construction sites where they repair and maintain heavy machinery. Seems essential non? They also buy heavy mining trucks that are at half life stage from mining companies and then do a radical overhaul in their own workshops. They buy them cheap and return them to service for 1/4 of the cost of buying a newie. Sounds great!
They had a setback with their pick and portal business but have taken some sort of remedial measure they say to prevent a repeat.

The weekly chart could be stabilizing while showing a bit of encouraging momentum divergence; plus Greg Canavan of fat tails advisory had EHL as a buy from a much higher price but has since demoted it to a hold.

Held

WEEKLY
big (41).gif
 
finicky said:
Bought 5,000 EHL @ 0.625

Decided this was worth an entry position since it is trading at significantly less its book value which was 1.14 at eoy fy23.
My blurry picture fwiw is they do interesting stuff with workshops set up at mining and construction sites where they repair and maintain heavy machinery. Seems essential non? They also buy heavy mining trucks that are at half life stage from mining companies and then do a radical overhaul in their own workshops. They buy them cheap and return them to service for 1/4 of the cost of buying a newie. Sounds great!
They had a setback with their pick and portal business but have taken some sort of remedial measure they say to prevent a repeat.

The weekly chart could be stabilizing while showing a bit of encouraging momentum divergence; plus Greg Canavan of fat tails advisory had EHL as a buy from a much higher price but has since demoted it to a hold.

Held

WEEKLY
View attachment 163981
Click to expand...
i hold ( av. SP just under 90 cents )

is the mining super-cycle still strong or waning as cycles do ??

but thanks for the reminder to watch it closer , with the view to top up in due course
 
Added 5,000 @ 0.58

Can't see anything in the last 6 years to warrant a p/e of 6 and trading at half its book value. Last year fy23 ROE dipped to 7%. Dividend around 4.5% ff. Greg Canavan seems to think its continuing downtrend is one of the minor mysteries of the asx small companies index but got rattled by it and demoted EHL from a buy to a hold. Might be something going on that I haven't twigged to, it does carry debt for one thing. Beats an exploration spec any day of the week in my book, holding those things is like being a homo at a Hamas meeting.

Held

5 yr WEEKLY
big (53).gif
 
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