Industrea's fifth purchase.

[etrader]

Industreas become a $300 mill firm after emerging out of a former shell into mining services

Since then they've purchased five companies in the mining service sector.

Reading the reports they're trading at a PE of 66 over last junes profit but they've already updated the market to the forcast profit for this year to june 30, so there pe on forcast is around 16.

IDL have a stringent purchase criteria and the companies their purchases are cash positive to the company straight away, with the mining sector booming they'll benefit from this.

This post is taking over from the former GPO which had not had posts for 18 months and have changed their entire structure since those posts.

www.industrea.com.au

[ekman]

Have been in IDL the last 12 months plus. Have been a bit nerve racking. However since the new CEO took over things seems to have turned around. A lots of shares on issue. New credit facilities and take overs may see even more shares issued. They used to do some navy contract work in the main sweeping area but have not seen any news lately from that part of their business. ;)

[etrader]

Ekman:

IDL are very steady with the shares slowing moving up having put on 10% in the last few weeks, good parcels of shares going through.

No news out yet in terms of the $75 million facility, as stated they have a strict criterea on purchasing companies and will be in no hurry to pick up the right firm.

Won't be till August till the year end comes out and my pick is to hit forcast profit or slightly exceed it, this could re rate the stock north a little if this happens.

One of the things i like is when they purchase a firm it has to be for genuine reasons by the seller and they stay on for 2 to 3 years, swopping their stake for min of 50% in shares, with an escrow of a few years.

IMO this stock will become a significant player in their field, will never be a multi billion capped co with what they do but if they're producing a good ROI I'm a happy investor. Div will prob happen in a few years so you're buying in for growth.

4th 1/4 cashflow statement:
http://www.asx.com.au/asxpdf/20070713/pdf/313fcmg1dk8n0b.pdf

intersting to note their turnaround in net operating for last 1/4 of 4.9 million, an 18 million loan facility and $8.9 million in cash.

Profit out for 30th of june in the last weeks of August.

[etrader]

As expected Industrea purchased another company with previous PE's at 4, this company has been purchased on a PE of 5 so will give $2 mill YE08 EBIT. They've also stated that they're eyeing up another purchase.

$20 million wipped off the cap value of IDL after todays purchase, investors have been pushing the price up leading up to this purchase today but the sentiment was obviously not to hot.


Mining products and services group Industrea Ltd has acquired Boart Longyear Ltd's Australian mining capital equipment business for $10.1 million.

Boart Longyear's capital mining business builds equipment used underground for carrying large loads, such as coal mining long wall equipment.

Industrea said the capital equipment business would be joined with PJ Berriman & Company Pty Ltd to form a $50 million mining capital division within the group.

Boart Longyear said the sale was in line with the company's strategy of divesting non-core businesses to concentrate on its flagship drilling services and products division.

© 2007 AAP

[etrader]

With the stock up nearly 50% in the 3 months it's out performed all expectations, the massive turnaround in profit increase, a first time dividend and great growth going forward.

are you still in on this stock Ekmen.


Closed at another all time high today.

[ekman]

Etrader

Yes I am still in, another 3,5 cent rise today makes me very happy

[Huang Chung]

No discussion in Industrea in more than 8 months, so I assume all previous holders have exited.

Not surprisingly, the share price has copped a battering in the last 6 months. I've waded in over the last fortnight and picked up 4 parcels of stock.

For the uniniated, Industrea is a mining services company and controls a number of wholey owned subsidiaries each with their own specialised areas of expertise.

They are winning contracts from the majors in respect of collision avoidance technology for earthmoving fleets, and signing contracts with Chinese coal miners for directional drilling equipment and methane extraction systems. On top of that, their P J Berriman subsidiary, located in the heart of the NSW and Qld coal mining districts, makes underground mining vehicles and materials handling equipment for the mines. They have now acquired the Mt Isa based Huddys contracting business.

A few of links that help tell the story:

http://www.industrea.com.au/html/news/2008/Industrea2008_AFR%20-%20Mining%20services%20provider%20poised%20for%20o rganic%20growth.pdf

http://www.industrea.com.au/html/news/2008/Industrea2008_Mining%20Chronicle_Iconic%20business %20changes%20hands.pdf

http://www.industrea.com.au/html/news/2008/Industrea2008_Industrea%20achieves%20$20m%20of%20n ew%20China%20contracts%20in%20a%20month.pdf

http://www.industrea.com.au/html/news/2008/Industrea2008_IDL%20Update%20Note%2004062008.pdf

[ekman]

The latest purchase of Huddys should generate more steady revenues rather having to rely on lumpy equipment contract sale. Share price down with the rest of the market. Still holding. Accumulating time?

Ekman

[Huang Chung]

The latest purchase of Huddys should generate more steady revenues rather having to rely on lumpy equipment contract sale. Share price down with the rest of the market. Still holding. Accumulating time?

Ekman

I hope you've been accumulating Ekman...


INDUSTREA CONFIRMS PREVIOUS FY08 PROFIT GUIDANCE

Industrea Limited (ASX:IDL) is pleased to report that, based on unaudited
management accounts, the results for the financial year ending 30 June 2008 are
expected to be at the top end of the guidance range provided to the market at the
time of the acquisition of Huddy’s1.

NPAT guidance2 $38-$40million

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00863627

P/E of less than 10.

Another stock in the mining services sector trading on undemanding multiples.

Disc: Holding.

[etrader]

Any holders of IDL still ?

Trading at a P/E of 2.48 which is a good buy, re-entered the market after some time out, have like all companies experienced a bit of dip in earnings from forcast.

Ekman are you still in there

[ekman]

Yes I am still in, but have not added anything to my holding. To much uncertainety and mine closures at present. Although they seem to have been able to secure several mining equipment contracts for chinese coal mines the last 6 months.

Bosse

[etrader]

Ekman:

I have checked in before and you have been in and out of this stock like me but purchased earlier this year right after the downgrade in earnings and got in at .12c. Has been a good buy.

awaiting Full year 09 and the market has re rated this stock in recent times.

Good luck all holders.

Still a low PE for a profitable co.

DYOR

[etrader]

So another 14 months have gone since the last post, have bought in and out 4 times since then and have made on every sale. Ekman are you still holding IDL ?
Last night they announced a $50 Million share placement for potential purchases or debt repayment, it has been flagged they are a strong runner in the purchase of Valley Longwall.

Await news

[cloggs]

I got in at 43.5. Yesterday's presentation was quite persuasive.

[mark100]

I'm in at 43.5 myself. Stock is cheap althought debt levels a bit high but ok. The placement will bring debt levels down but I suspect the cash will be used for a tilt at Valley Longwall