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JLG - Johns Lyng Group

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Johns Lyng Group is an integrated building services group delivering building and restoration services across Australia.

The Group's core business is built on its ability to rebuild and restore a variety of property and contents after damage by insurable events (e.g. impact, weather and fire events).

It is anticipated that JLG will list on the ASX during October 2017.

http://www.johnslyng.com.au
 
This new IPO looks to have started well. I've bought a few today for a medium term hold.
The daily traded volume is too low for me to include it in the momentum thread.
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After bottoming out at around 80c at the end of November, JLG has been putting runs on the board again, rising to a high of $1.015 today.

Since early December the company has announced partnerships with Suncorp and an unnamed major Western Australia-based insurer for the provision of domestic property insurance repair work.

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The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread.

Late entry - should have been 0.90 after high volume BO-123L
Setup: BO-NH Grade B due to low daily volume
Buy limit: 1.10, iSL 0.90, trail stop

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according to WAM conference call, JLG is a company that is relatively unaffected by coronavirus.

It has 2-3 years of work (floods, bushfires, hailstorms)
Market cap $300mill
Dividends 3c,
PE is 20, growth of 20% for next few years

(Intangibles a worry - goodwill on acquisitions can bite !!)

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Dona Ferentes said:
according to WAM conference call, JLG is a company that is relatively unaffected by coronavirus.

It has 2-3 years of work (floods, bushfires, hailstorms)
Market cap $300mill
Dividends 3c,
PE is 20, growth of 20% for next few years

(Intangibles a worry - goodwill on acquisitions can bite !!)

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JLG has a good story but it was not untouched however. In last 30 days share price is probably lost by 25%. Yes, some were much worse. It is all relative changes however. No one could predict COVID19 just like a Sunami or earthquake - so damages have been done and more consequential damage would be done.
So charts, Bell Potter research nothing would work now.
Notwithstanding BP asked its clients to hold on 25 Feb with a prediction of $2.7 which is once again, does not reflect today.

.
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It has been a while. I have meant to post previously as there has been a number of breakouts over the last year since 355.

The market seems to like the US purchase as the match-out is up nearly 10% currently, so it will be interesting to watch it when the halt is lifted.

Acquisition of Reconstruction Experts – Accelerating Growth in the Large U.S. Market

Johns Lyng Group Ltd (ASX: JLG) today announces that it has entered into a binding share purchase agreement to acquire Reconstruction Holdings, Inc. (together with its subsidiaries “Reconstruction Experts”, “RE” or the “Company”) for an up-front Enterprise Value of US$144m, plus a potential earn-out of up to US$58m. The potential earn-out is payable based on the 3 year trailing average EBITDA4 performance of RE, to be tested annually over the 2 years post-Closing (12 months to 31 December 2022 and 2023 (“CY22” and “CY23”)).

Established in Colorado in 2001, Reconstruction Experts is a leading provider of insurance focused repair services to occupied properties in the U.S.

The Company’s primary client base is Homeowner Associations (“HOAs”) - the U.S. equivalent of Strata Managers/Owners’ Corporations, i.e. large multi-family properties including apartments, condominiums and master planned communities.

Reconstruction Experts generated approximately US$127.4m revenue and US$18.5m EBITDA5 for FY21 with approximately 80% of its revenues generated from defect and damage insurance related work (fixing construction defects and man-made or weather-related property damage).

The Company’s key services are highly compatible with JLG’s core competencies.
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JLG has done extremely well for me since I first invested in the company. They continue to keep growing and are in my top 4 for this year. They may not have the growth they did last year, but I see no reason why they won’t continue to keep developing as the year progresses.
 
Ally Selby: Welcome to Buy Hold Sell. I’m Ally Selby, and we have a very special one for you today. We scoured the top holdings of some of the country’s finest small-cap managers and today we’ll be taking a look at some of their favourite stocks. Plus, we’ll also be asking our guests to name one stock each for the year ahead.

Today, I’m joined by Ben Rundle from Hayborough Investment Partners and Martin Hickson from 1851 Capital.

Ally Selby: Next up, we have Johns Lyng Group, which recently upgraded its revenue gardens for FY22 by 11 per cent. Is it a buy, hold, or sell?

Martin Hickson (HOLD): Fantastic business. They’re obviously benefiting from the recent floods across the east coast, made a highly accretive acquisition over in North America at the back end of last year. Great management team. Having said all that, I think it is all priced into the stock. It has a PE of 55 times, which is three times the overall market PE. So, I think it’s a hold based on that valuation.

Ally Selby: It’s also been caught up in the recent sell-off, its share prices falling around 7 per cent in 2022. Is it a buy, hold, or sell?

Ben Rundle (BUY): Martin makes a good point. It’s very expensive, but I still actually think it’s a buy. I think that their earnings base is going to significantly increase off the back of these floods in Australia. And I think with a management team who have such a great track record buying a business in the US, they’ll have a lot of success with that. So, it’s one we’re happy to stick with and buy.
 
Saunders (SND) but is already fully valued by the market when considering SND's rocky profit record.
Has a bridge building division (sml to med scale)
Unrelated but also has a stake in defensive fuel storage government initiatives - builds tanks.
 
peter2 said:
Good thinking 99. Flood repairs, rebuilding, building products and services. JLG, JHX, CSR, FBU, BLD others?
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Does Downer (DOW) do anything in that part of the country?

They're pretty big in some areas with roads, bridges, utilities and other infrastructure.
 
Good evening
JLG Executive director and chief operating officer Lindsay Barber sold four million shares.
Current earnings guidance for FY23 not changed all good news.

SP down 12.33%.
Announcement attached.

Not holding.

Kind regards
rcw1
 

Attachments

  • JLG Share-Trading--Business-Update.PDF
    164.2 KB · Views: 8
Thought JLG would be a pretty safe medium term hold with all the anticipated work arising from the floods and other natural disasters.

Today's report confirms the increase in work, revenue and EBITA (whatever this is) but the shares were sold off hard.

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peter2 said:
Thought JLG would be a pretty safe medium term hold with all the anticipated work arising from the floods and other natural disasters.

Today's report confirms the increase in work, revenue and EBITA (whatever this is) but the shares were sold off hard.

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Personally I always thought JLG is a great stock.
Having read your commentary and market fall, I revisited and think the ROE could be a detrimental factor for market expectation to punish it.
My instinct says there could be some intrinsic core issue prompted the CEO to sell off well in advance in Dec 22.
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