BWY-Broadway Industries Ltd

[KJ]

For those interested in small cap stocks BWY could be worth a look.
Total shares on issue-19.5m

Earnings Growth:
F/Y 30/6/01 NPAT $0.76
F/Y 30/6/02 NPAT $1.11m
F/Y 30/6/03 NPAT $1.36m
F/Y 30/6/04 NPAT $2.6m to $2.8m (my estimate) H/Y $1.9m

Based om this estimate PE around 7.5

ROE around 20%

Sales for the half yr were 22.3m-they operate under 3 segments-H E Perry-phographic equipment supplier,Mercer Building Products and Mercer Stainless.
They recently bought Equipment Maintenance Ltd-supplies vacuum packaging machinery to the dairy industry.

The coy supplies materials handling equipment and sterilisers and washers.

They paid a div of 2cents at half yr.I guess that this could well increase.The share price has had a strong run up over the last yr but still looks fairly cheap.

Hold BWY

[craic]

KJ Broadway came up in my equation and scored second only to RNS. They went from 43cps a year ago to 100cps at the same time this year. on my figures the share price had increased about 155% in a year. With a dividend of 4% and a pe of 8 they have to be a good bet. I have not had the oportunity to examine the company in any detail so I am grateful for your summary as now I know who they are without having to press a lot of buttons.
Just as a matter of interest the figures for RNS are. Share price growth in one year, 180% - Div 11.1% - PE 11.5. and the price has increased since then.

[David Renwick]

I bought on the strength of an item in "The Independant" 2+ years ago for around $0.30. Sold @ $0.37 - sob:(. Well directed by Humphrey Rolleston local pro' drctr who's just sold out of ACB (see the item on
"Investing in Cheap Accom" thread) & Ian Farrant. Much of the growth was attributable to dairy conversions IMO. Can it last? Tough competition in s/steel mkt. Don't know where growth is now or if that's changed. P/E is attractive and trend is up, albeit on low vol.

[KJ]

Interesting Craic-might take a look at RNS-is your equation based on earnings growth and low PE-other factors also I guess?

[Burgerbun]

KJ..theres already a thread on BWY.

Would be good to keep it all together as this stock is little talked about.

Good to follow the thoughts for a few years. its more interesting.

JMO.

Ill bring up the old one.

[Dough Boy]

Carried out a review of potential stocks on NZX and BWY came up on the screen for value.

Obvious negatives are:

Low liquidity.

Miss-matched camera and stainless steel fabrication business.

Camera business not strong.

Stainless steel fabrication could slow down with possible peak in primary production.

Anyone investigated this one as I am just beginning to look at it.

[winner69]

Now Mercer but jeez when Alan runs out of soare cah things can go wrong for many eh