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clock Created with Sketch. 16/08/18
09:27
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Originally posted by cyclerider
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BOL reported 100% earnings growth, beat Revenue and Earnings guidance (which they didn't flag), delivered a strong cash flow result leaving the balance sheet now fully de-geared and guided to another circa 50-60% earnings growth. Yet despite this the stock still only trades on 4x EBITDA versus 6-9x historical levels since listing 15 years ago and at a large discount to peers. So despite earnings momentum being exceptionally strong, material capital management optionality which they flagged, a risk profile greatly improved and management guiding to another very strong FY19 the stock has failed to re-rate.
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Very well said. I was surprised at sell off. What were these people expecting? The coal industry in QLD cannot find contractors at silly low wages on offer for last 5 years. Hourly rates have risen 50% and still not attracting workers. At least 30% raise from here need to attract workers. Boom has to benefit from these price pressures after years of maintenance neglect.
(20min delay)
