ALS Ltd - ALQ (Was Campbell Bros, CPB)

[macduffy]

Anyone else here holding CPB?

They're making a 1 for 6 renounceable cash offer at $22 ( a 25% discount to the last traded price of $29.59 ) to fund a takeover offer for Pearlstreet.

CPB is a leading provider of laboratory testing services to the mining,oil and gas, environmental, life sciences and other sectors through its subsidiary, ALS Laboratory Group. Pearlstreet (PST) is apparently the leading Australian company in "non destructive testing" ( whatever that entails!)

Disc: I've held CPB since February 09 for about a 150% gain.

[sharer]

Anyone else here holding CPB?
They're making a 1 for 6 renounceable cash offer at $22 ( a 25% discount to the last traded price of $29.59 ) to fund a takeover offer for Pearlstreet.
CPB is a leading provider of laboratory testing services to the mining,oil and gas, environmental, life sciences and other sectors through its subsidiary, ALS Laboratory Group. Pearlstreet (PST) is apparently the leading Australian company in "non destructive testing" ( whatever that entails!)
Disc: I've held CPB since February 09 for about a 150% gain.

This has been on my watchlist for review about every two weeks all thru the year, but i don't yet hold any. The business seems quite attractive, even "defensive" (would you say MacDuffy?).
Unfortunately my guesses at TA entry points have never happened at a time when there was any money available, and as something of a newbie still i haven't had the confidence to sell up a stock working well & jump into CPB instead.
Now you point out the opportunity with the new issue, i think i'd better do my sums again. It might be a good plan to dump one of my risky things in favour of CPB, which i feel is more basic & diversified.
Also, i have a long attraction to profitable essential service firms like PST that are needed for the big miners or CSL etc to succeed. It will further strengthen the character of CPB's business as i see it. (Another such favourite of mine is MND - there's enough upsy downsy for patient capital plays, plus div-yield of 2 - 4X the likes of BHP or CSL e.g.).

[Dr_Who]

What a nice looking graph on CPB.

Hey Mcduffy, how come you didnt tell me to buy this one? lol

[macduffy]

What a nice looking graph on CPB.

Hey Mcduffy, how come you didnt tell me to buy this one? lol

C'mon, doc, you can't kiss all the girls!

As you can see from the chart CPB hit a SP of about $38 around a year ago and then went into decline ( along with a lot of others!).
I bought in February but have been sitting with my finger on the trigger ever since, determined to protect my profit if it started to backslide.I'm a bit surprised that the market has taken this issue and takeover so well with the SP up again after the announcement but I'll take it and be grateful.

I bought because it seemed to me to be one of those quality stocks which were dealt with unduly harshly by the market. Not sure I'd want to be getting in now at $30+ although the shares are cum rights at present ( ex rights on 6 October).

As always, DYOR.

[macduffy]

Well, the board of PST has rejected CPB's offer. With the MD holding 50.7% of the capital, that looks pretty conclusive unless CPB come up with a better offer.

I might have a look at PST although their SP took off a couple of days ago on plans for a recapitalisation and will no doubt do so again now.

[mark100]

Well, the board of PST has rejected CPB's offer. With the MD holding 50.7% of the capital, that looks pretty conclusive unless CPB come up with a better offer.

I might have a look at PST although their SP took off a couple of days ago on plans for a recapitalisation and will no doubt do so again now.

I picked up some PST 2 days ago the morning they announced the Private Equity deal at 34/35c. Very happy to see CPB have shown there hand so soon. Hoping for a bidding war although I never got as many PST as I wanted. Did get a few PSTO as well

[macduffy]

A good pick, Mark.


Looks like the makings of a bit of a fight for PST.

Here's today's article from The Australian.

http://www.theaustralian.news.com.au...-16941,00.html

[mark100]

A good pick, Mark.


Looks like the makings of a bit of a fight for PST.

Here's today's article from The Australian.

http://www.theaustralian.news.com.au...-16941,00.html

Sounds like the PST MD wants to keep his job and with 50% of the shares its hard to argue with him. Looks like more cash is needed before he'll take an early retirement. I'm not sure how important PST is to CPB, but obviously I'm hoping for a higher bid to get him onside

[/I]

[mark100]

Sounds like the PST MD wants to keep his job and with 50% of the shares its hard to argue with him. Looks like more cash is needed before he'll take an early retirement. I'm not sure how important PST is to CPB, but obviously I'm hoping for a higher bid to get him onside

[/I]

Thank you CPB. I've been soaking up a few PSTO the past few weeks mainly because of the arbitrage opportunity when converting to PST but also because I thought CPB could return with more cash.

[macduffy]

Well done, Mark!

I had intended to do something similar but took my eye off the ball - watching gold stocks, I think - so missed out.

Will have to be satisfied with the great run that CPB's giving me. I applied for over-subscription in the rights issue, but not much chance there I would think with the rights trading around $5!