---> brambles its back baby <--

Uk overnight - swings + 3% to close at
BRAMBLES INDS. GBX 316.75 +5.50 +1.77%

Brambles should pass $9 today with strong interest and a fairly tight register with value mandated managers in the top 5 holders ( Capital and Fidelity) - the tightness of the register will magnify the upward movement in the SP particularly index managers which will need to get stock to mirror BIL's increased price of late.

Brambles CEO has proved himself patient and after shoving CK Chow out the door, Brambles has turned the company around completely, the debt levels are at all time lows with Divys caped at 10c interim and final the gearing of the company has dramatically decreased and the free cash flows are significant.

so, where to next for BIL - they wrote down the value of CHEP after the GKN debarkle and the managed to find those 12,000,000 pallets in chep USA.

Chep is building the business particularly in the US and EU with price increases and a total pallet management strategy ( Madrid review 2004) showing that the closures of US distributions centres was a creating and well implemented decision.

The track record of the management team at BIL is excellent and the "runs are on the board." so - what’s next ?

6 - 8 months - left to go on the "turnaround stratergy" then i would look to further debt reductions and possible caplital managemnt initatives ( including a special capital return ) to reward shareholders, as well as minor bolt on acquisitions such as Bowen cranes.


does anyone else have a view ?

singas


I hold BIL - read the red - does not constitute an offer of secuirites. rate BUY - LT Target 05 $11.50