rbs recommends to buy bol - the australian

I think this article was the reason for the SP movement today.

http://www.theaustralian.com.au/business/city-beat/archer-must-dig-deeper-to-win-boom-logistics-rbs-analyst/story-e6frg9no-1225876383827?from=public_rss

Archer must dig deeper to win Boom Logistics: RBS analyst
Michael Bennet From: The Australian June 07, 2010 11:08AM

ROYAL Bank of Scotland reckons private equity group Archer will have to up its 52 cents a share bid for crane higher company Boom Logistics to gain 100 per cent control.

Analyst Matthew Nicholas said the bid, confirmed as "highly conditional, confidential and incomplete" last week, was pitched at the same price as Boom's net tangible asset value of 52c, and would need to go higher to succeed.

"We believe any proposal for 100 per cent control would need to be at a premium to NTA," he said.

Archers move came after it, along with the privately held McAleese Group, earlier last week lodged an initial substantial shareholder notice showing a 10.5 per cent stake.

Nicholas also said today the offer, which is at a 73 per cent premium to Boom's closing price before confirmation of the bid, looks expensive on full-year 2010 numbers.

He said the bid values Boom on a price-earnings measure of 31 times, but did concede full year 2010 "should be the trough earnings year for Boom".

"Rolling forward to full year 2011, however, the bid values Boom on 5.2 times earnings before interest tax depreciation and amortisation and a price-earnings of 14.4 times, given the forecast earnings recovery," he said.

Boom last traded 1c weaker at 37c.

RBS holds its buy recommendation with a target of 52c.