EHL - Emeco Holdings

[Snow Leopard]

Like a lot of stocks with an association to the mining industry this has had the stuffing knocked out of its' share price but of late has staged a strong recovery on increased volume and closed today at 38.5c [:o Apologies for the delay in flagging it up but I am a busy tiger :o]

Anyway this gang rent and sell earth moving equipment.

The quoted NTA is 79cps, half year earnings were 6.2cps full year guess approx 10cps up. Debt to equity is fairly high for these times but refinancing is mainly in 2011.

The current assumption has got to be that year 2010 turnover and profit will be down on this current year.

You can read the recent half year announcement (http://stocknessmonster.com/news-item?S=EHL&E=ASX&N=438947) for financial details.

I bought some last week and am currently pleased as with progress to date. My hope would be that the price at least holds reasonably well in the near term and that has/when life becomes more positive it drifts back up to the $1 mark.
We have missed out on the 2cps half year divvy :(

regards
Paper Tiger

[Junior80]

Hi Tiger,

I am in as well. Bought a small parcel. Let chart looks good, definitely heading in the right direction.

[trackers]

Wouldn't this stock rely on there being a recovery in the construction sector?

[Snow Leopard]

Wouldn't this stock rely on there being a recovery in the construction sector?
It is mostly mining, but any recovery helps.

Banged its head against 48c a few times and after a sudden, brief plummet is once more climbing, 44c at the end of today.
Still with it but nearly hit the eject button a few days ago. Fortunately the key word is 'nearly'.

regards
Paper Tiger

[Huang Chung]

PT, if you like the sector, you might want to have a look at NRW Holdings (NWH), which has been winning some good contracts of late. Share price is also on the rise, but still well off the highs.

[Damo79]

ZGL is also a similar one. I was in a while ago and it's still on my watchlist. It's massively undervalued based on past results. But of course past is past and the expectation of Mr. market must be huge decrease in revenues/profits in the coming years. Time will tell.

[Snow Leopard]

NWH I know about (Footsie was doing publicity for them on this board for a while)
ZGL has had too many days with no trades in the recent past to meet my requirements.

Thanks for the tips.
Paper Tiger

[Snow Leopard]

Nearly posted yesterday on the trajectory of Emeco's share price over the last month from 33.5c on the 8th of July to 69c last night.

So today we had a high of 84c and the last trade at 77.5c before being issued with a speeding ticket and a subsequent trading halt.

So some people seem to know what is going on, but I don't. :o

regards
Paper Tiger

[Footsie]

I nearly bought into these, based (once again) on a rumour out of Perth.

The same person who tipped me off about NWH....

unfortunately I didn't act on EHL


This guy tipped me off about NWH at 27c and EHL @ 36c

he's also told me (he's a perth broker) that people are coming off the street to buy RFE, last time he saw that was KAR at 3.50

[Rego55]

I just bought into this share at 20c as I heard it on very good authority that it was worth a fair bit more and could do something interesting over the next 12 months.

[Bobcat.]

Franklin and its subsiduary Templeton are still selling down.

I'm waiting for that to subside but I agree that anything under 20c is attractive. I bought in low a couple of months ago to trade off a bounce but any decent recovery could take a while. Their Indonesian operation is now defunked, and whilst they are trying to relocate machinery and operations elsewhere (Chile, Canada etc), the financial benefits in doing so are some way off.

Still, they are in recovery and most of the bad news is I believe behind them.

BC

[Rego55]

Yeah that is pretty much what I heard. Basically that they have restructured and are in decent shape moving forward - definitely an investment for me and certainly in for 12 - 24.

[Rego55]

Emeco has been on a good run recently up to 29 cents a share ( I bought in at 20). It was then that ASB changed their opinion on it and switched from a hold to a sell. I didn't see any report come out from the company for this and it doesn't seem to have had a major effect (dropped to 28.5) but does anyone know why they would do this? Their valuation is 23 cents so if it climbs too high do they just arbitrarily change their recommendations?

[macduffy]

I think that's pretty much it, Rego.

I understand that ASB source their research from Morningstar who have a fairly rigid system for "valuing" stocks. In the absence of new info by way of company announcements or macro-economic news, they tend to change their recommendations when a shareprice gets out of kilter with their view of the world!

It just reinforces the need to DYOR!

[Rego55]

Too true. Thanks very much for that.