BOL (ASX) Feedback

Originally posted by madamswer ↑

I note your points about BOL's prior capital raisings having helped to "de-risk" the business. I guess this is will only have been true if that capital had been directed prudently. Unfortunately, BOL management have not exactly covered themselves in glory, on this score. Without spending the time to re-check my records, right at this moment, my memory is that every batch of fresh capital was used by management as a wild eyed opportunity to realise their bold plans for expansion.

@MarsC,

We sing from the same hymn sheet (which is not necessarily a good thing, mind).

Although I'll have you standing just slightly corrected: not all equity raisings accompanied acquisitions directly.

But this point is moot, anyway: whether capital was raised simultaneously with acquisitions, or whether raisings were undertaken to repair the balance sheet which became that way because of earlier acquisitions, it boils down to the same thing, in my mind: Inordinately poor capital discipline.

And the irony should not be lost on anyone that the very assets that were acquired over the crazy, commodity party years, with the equity capital that was raised, are now being sold off (in a quasi fire sale) in order to pay back the providers of the debt capital.

"So whilst the balance sheet repair that is occurring is very welcome (and central to the investment thesis), ultimately it will mean the bankers will eventually ease off. Once they do, will BOL managements animal spirits be unleashed again? I hope not."

I have almost zero doubt that history will repeat itself.

When the company cheque book gets taken out of the bank vault and returned to the BOL board in 12 months'time, watch out.

The funny thing is that when the company starts to make renewed noises about "expanding" and "growing" and "investing in its future" and "responding to improved market conditions" (my guess is that the first "strategic" deal they do will be to "diversify" into something other than cranes, given how scarred and brutalised they probably are after the past few), then that's most likely when renewed interest in the stock will be sparked among the majority of investors.

Just when it starts to become the most dangerous.

Ah well, so goes the cycle...

Expand

"I have almost zero doubt that history will repeat itself.

When the company cheque book gets taken out of the bank vault and returned to the BOL board in 12 months'time, watch out."

Indeed. Much as I think of myself as an acquirer of a part interest in businesses, and that my marker is intrinsic value, when I invest in a business like this, "intrinsic value" takes on a different aroma.

For if a can't trust the management to deliver me any free cashflows, at some point in the future, then I will be more than happy for other market participants, who are more forgiving than I, to relieve me of the opportunity.

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No.	Vol.	Price($)
2	173364	14.0¢

No.

Vol.

Price($)

173364

14.0¢

Price($)	Vol.	No.
14.5¢	278210	4

Price($)

Vol.

No.

14.5¢

278210

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

No.

Vol.

Price($)

60000

0.155

135000

0.150

106896

0.145

59500

0.140

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

Price($)

Vol.

No.

0.160

45000

0.165

167376

0.170

107000

0.175

139683

0.180

385245

(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

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