ORI - Orica

[winner69]

The old thread seems to have got lost in the archives somewhere - probably desrved to end up there as i was only talking to myself anyway

Anyway just to remind you that the long term uptrend that started way back in 2001 is essentially intact .... pretty good going from $4 to $32 in that time ....... good TSR that far outperforms the ASX over that time.

One instance of when buying in to down and outs struggling to get out of the gutter as Lizard puts it on another thread can be very rewarding ...... as long as you stay with the ride until it's over.

The chart looks a bit like the FBU that Phaedrus keeps updating.

Orica AGM on Friday ..... usually low key affairs but probably reaffirmation that things still trucking along pretty well

Earnings from the recent acquisitions in the mining services area are still to come through. The Dyno debacle will benefit them hugely as well. So expect to see future solid earnings growth and the consequence increasing share price.

[winner69]

ORI closed the year out at $31.75 giving it a 31% increase over the calendar year ...... clearly outperforming the Aussie market that went up 11%.

Orica's stated intention is to provide total shaeholder returns in the top quartile.

Management has a large component of this in their pay packages and it is apparent that this does drive Orica performance.

With a 31% increase in shareprice, a reasonable dividend and a share buy undertaken no doubt they have achieved what they set out to do for shareholders.

As long as the resource boom continues (and Orica think it will for some years to come) Orica will continue to do well. Remember they are suppliers to the mining industry and are to a large extent not affected by the falls and rises in commodity prices.

Talking to myself anyway .... but expect another solid year from ORI ...... been worthwhile holding for the last 6 years or so.

[winner69]

Front cover the BRW this week has a photo of head honcho of Orica with 'Orica's Big Bang' proclaimed across the cover.

The article inside has the byline '.... it is about to join the fast growth stage of the mining boom'

Essentially saying that Orica is now well positioned to benefit from the tens of billions that has been pumped into expanding the global commodity production thta is comong on stream shortly

Surprisingly there has been only 5% growth in the resources sector... and all the investment that started in 2005 is only just showing up in production figures .... so expect strong volume growth this year and 2009 and beyond ... Orica are entering the cycle late and see the best ahead of them

Now a global leader in explosives and minig services things like all the things needed to line mines etc

I still believe that 2008 and 2009 will be great years for ORI ....... and why not expect a $50 plus share price sometime in that period

I'm stil holding .... even picked up some cheap ones the other day

[Halebop]

Surprisingly there has been only 5% growth in the resources sector... and all the investment that started in 2005 is only just showing up in production figures ....

Good for Orica I imagine but will it be so useful for some of those newly minted mines & miners?

[Huang Chung]

I'd see a BHP / Rio merger as being a potential negative, as the merged entity would be in a strong position to screw down the price they pay for their consumables, including explosives.....a bit like how Woollies is able to screw down its costs, by squeezing its suppliers.

Of course, I'm assuming that BHP and Rio are already large customers.

[winner69]

Good for Orica I imagine but will it be so useful for some of those newly minted mines & miners?

Thats what I have thought about as well when assessing the long term future of some miners .... miners done well mainly from skyrocketing prices driven by supply issues .... so all this investment to catch up with demand .... more stuff comes out of the ground .... and prices fall .... not good for miners eh

However the miners will start to mine the stuff big time over the next few years and ORI will do well

[COLIN]

No comment on this one, for a mighty long time. Market seems to like the latest results - up 6% today, which is quite good for a company of this size. They haven't attempted to quantify the next year's results, other than to say "expected to be better than latest year" but I feel they are being extra cautious.
Let's hope the sp now resumes its upward trajectory.

[winner69]

I see one of not many stocks some guy picked if he had to invest today and go on a desert island for 5 years was ORI

Orica: Post the demerger of Dulux (shareholder vote pending), 70% of Orica’s EBIT will be sourced from mining services (explosives), 16% from chemicals and 14% from mine safety business Minova. More than 60% of EBIT will be sourced from overseas with 23% coming from Latin America/Asia. While Orica will have to keep investing to meet long-term demand, I am impressed by its leverage to growth in mining volumes, to a recovery in US construction activity (via quarry volumes) and to the inevitable improvement in mine safety standards in emerging economies.


The DLX demerger has happened and combined value of both more than a buck higher ... so far the sum of the parts did equal more than the whole

I still believe in long term prospects of ORI ... esp is there is a sustained global recovery .... and it ain't done too bad lately .... better tahn the market anyway

[winner69]

Just take a passing interest in ORI these days waiting for the next resource boom.

Looks like CEO did get the sack after all. Last week it was th story about a time for a change but there will be a transition period. But DCM really meant Don't Come Monday, understand fired and don't come to work. The cheque for several million in the mail.

http://stocknessmonster.com/news-item?S=ORI&E=ASX&N=420981
Smith was a grumpy old bugger anyway that nobody liked. Good riddance.

Director steps up as interim CEO .... 180 grand a month pretty good lurk I reckon. I reckon that 6 grand a day, including lunch breaks. Something wrong with this world eh.

[winner69]

Things finally catching up with ORI - $1.5 billion in write offs

Share price down to $15 odd .....hmm