Ann: Equity Raising Announcement , page-10

I think you'll find comparing BOL to BLY (and to some extent ELD) to be a good excercise.

As BOL, BLY has very high fixed costs (I mean hiring out drilling rigs is awefully similar to cranes)and is highly leveraged to economic activity. BLY did a similar thing - raised massive amounts of capital (first in 1 for 1 rights issue then in $15k SPP that was scaled back) at 27c. Their shareprice immediately collapsed to 26-28c and has been trading at that level for a few weeks, until analysts recognised that business now has significantly less risk - and put Buy recommendations on it. Now price is 34c and most expect it to run to 45c by year end.

It is my belief that after the capital raising, BOL will be trading within more narrow range - volatility should reduce dramatically which would lead to re-rating by analysts. Longer term, in one year I'd expect to be able to get 60c per share for it - i.e. we get to get the premium on existing shares and double any money we fork out on the rights issue/SPP.

At the end of the day, if you believe construction activity will recover in 12 months time, then there is a strong case to participate - afterall we are paying significantly less than the NTA. My main concern is company's performance over over the past. It went from $1 to $5 from Dec 03 to Dec 05 and then back to the $1 in Dec 07.

Can many see much of downside risk at 30c? I can't.