Compelling case for an investment., page-2

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Jacobite45

76 Posts.

30/07/15

18:46

Post #: 15723674
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Originally posted by alnby ↑

madamswer; you make a very compelling case for holding a few shares in BOL in the thread "market update - 30.6.15".

That Market Update gives a very good guide to the next 12-18 months for Boom, and as you say; (not your words) management have very few options but to cut staff, improve workplace agreements, sell off assets and aggressively continue to pay down debt. And this path leads to a momentum of improvements with lower costs and then FCF can eventually be 'used' in other ways.
The new banking covenants pretty much ensure that this is where management are lead. And indeed in the this latest update you get the feeling they are no longer resisting.

The parallels to PMP's journey over the last 24 months are indeed stark. BOL has fewer 'moving' parts and does indeed seem to have a less winding path to follow.

The share price seems to have found a base. The downside risk versus the upside reward does now seem compelling.

Asset sales, improved wage agreements, less staff, falling debt servicing costs and FCF.

From the Market Update;
"In arriving at the new debt covenants, BOL sought to achieve several objectives:"
(The one that helped assure me of where BOL is going in the short term and how-)
" - to ensure Boom is in a favourable position to re-finance its debt during the course of 2016 before the current facility expires in January 2017."

Boom's short term path seems fairly obvious and its' financial de-risking is now well underway, with the momentum that brings.
I've decided it's prudent to risk some of my capital on the journey.

For those that aren't familiar with the PMP journey over the last two years - it is well worth reading through the PMP threads.

alnby.

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I have also been holding and following this closely.

Bear in mind that the dropping dollar is actually helping BOL in their sales of equipment, as the equipment becomes cheaper in USD. The good thing about cranes is that they are pretty much a commodity. The bad thing about the low AUD is that purchases of new equipment may become more expensive, so we may need to revise capex upwards.

BOL Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

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(20min delay)
Last 14.0¢		Change 0.000(0.00%)		Mkt cap ! $60.80M

Open	High	Low	Value	Volume
14.5¢	14.5¢	14.0¢	$18.98K	135.1K

Buyers (Bids)

No.	Vol.	Price($)
2	173364	14.0¢

Sellers (Offers)

Price($)	Vol.	No.
14.5¢	278210	4

View Market Depth

No.	Vol.	Price($)
1	60000	0.155
3	135000	0.150
2	106896	0.145
2	59500	0.140
2	37700	0.120

Price($)	Vol.	No.
0.160	45000	1
0.165	167376	3
0.170	107000	2
0.175	139683	3
0.180	385245	8

Last trade - 16.10pm 22/11/2024 (20 minute delay)

BOL (ASX) Chart

Compelling case for an investment., page-2

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