anyone interested here?, page-19

Am still long from my original thread post early December from 19/20 cents, looks like EHL ran too hard to 27 in my view on no news, 24/25 is likely some base until the company reports some news in Feb and market can see the reality of its free cash flow.

I would expect some positive news on new tenders, a base forming in utilisation, more sales of underutilised assets and therefore a much lower debt balance.

all these factors should hopefully equate to a more realistic value above 30c or so by March.

cheers
Jemma

P.S.- the funny thing with this company is that it reports its highest FCF when its utilisation is low and all growth capex is off the agenda.

P.P.S - found this old article from 2008, how interesting to fast forward 5 years... :)

Emeco value goes to earth
Giles Parkinson30 Jan 2008, 3:21 PM

Buyout firms Archer Capital and Pacific Equity Partners declared themselves to be "happy boys” after securing the $944 million IPO of Emeco Holdings July 2006, which is not surprising since they had quadrupled their investment in 18 months.

The same can’t be said for the buyers of those shares, who must be wondering how an investment in a earth moving rental business in the height of a resources boom could possibly go backwards.

Emeco’s public shareholders paid $1.90 a share in the float jointly arranged by Citi, Credit Suisse and UBS. That was down from the $2.10 to $2.50 range that was originally pitched to institutions, but it was still sold at a hefty earnings ratio of 16.3 times expecteded earnings.

Now, after yet another downgrade, Emeco shares have slumped to a low of 66c each. On Wednesday, they plunged more than 25 per cent after the company blamed Queensland floods, continuing losses in its new US business, a slow recovery in Indonesia and bottlenecks on the eastern seaboard.

PEP and Archer bought a 75 per cent stake in Emeco in December, 2004, for about $A475 million, including debt, from Dallas-based equipment rental company Darr Equipment. The IPO valued the company at $1.44 billion, including $A250 million in debt. It now has a market capitalisation of $600 million.