IPO - Big River Industries Limited, page-14

Be careful with this one....

The formwork division is basically held up by 4-5 large customers who can and will walk at any time. There has been a lot of competition show up in the marketplace over the last year undercutting prices, margins are way down for suppliers trying to compete to keep their market share. Imported plywood is overtaking Australian made as quality has become substantially better and much cheaper. Once you discount it's very difficult to bring prices back, and Big River are heavily discounting in an attempt to eliminate competition.

Commercial division is not a big money maker either as it is so competitive and margins are very tight.

The Pidcock family sold out of the business 12-18 months ago and now it is being floated?? 75% of the proceeds from the IPO are being used to pay off debt and only 9% for working capital.

I will sit this one out, the only thing I would buy is puts! My opinion only though....