Shovel Suppliers

[lewinsky]

The old adage of saving money for the companies supplying mining services is again proving true over the last three months.

BLY over doubled On a p.e of 1.87. Expecting a recovery in the second half of 2009.


IMD increased spp from mid 30 cents to 60 cents. Good management and good track record.

SWK announcing improved market conditions.

BOL up from lows.

Mining companies are going to continue to drill, especially for old,gold and uranium.

I think there is still some upside in these.

Are there any others that should be watched?

LEW

[Sauce]

Hi Lewinsky

I think one of the best growth stories in the mining equipment and engineering sector Austin Engineering (ANG).

They got smashed down to a PE of around 3 for awhile, since rebounded over 100% since the start of the year and now trading on very undemanding PE of around 7 (and still growing profits/revenues). Incredible Management who have under promised and over delivered every year.

They have intellectual property that provides a competitive advantage with their Westech dump truck range and have geographical diversification with interests in Australia, North america, middle east and South America.

Currently in a trading suspension pending an announcement today, most likely an aquisition in South America.

Anyway IMO they are cheap cheap cheap. Previous high before the downturn of $4, and they are a bigger and more profitable company now than then yet trading at $1.60.

There is an old thread with plenty of info somewhere.

Regards

Sauce

[macduffy]

BKN have more than doubled in three months.

Now there's a literal "shovel supplier" of the mechanised kind!

;)

[Sauce]

BKN are of course major shareholders of ANG.

[mattyroo]

Have a look at RPC, about to relist as RER - Resource Equipment Rentals. Under the guidance of Jamie Cullen, ex PCH. Going to have a 16:1 consolidation. Shareholders get the opportunity to buy in at 20cents. Looks like a potentially good growth company, and follows one of my favourite investing strategies - back the jockey!

[lewinsky]

Thanks for the feedback.
I like the look of RER. PCH was a real success story and was a nice little earner for me.
I thought they handled the sales process really well and kept investors informed as to what was happening.
It even prompted me to email Bryan Gaynor at the time as to an example of how a Board should handle a takeover. I think around that time there was some shenanigans happening with an NZ Company takeover.

Lew

[lewinsky]

IMD up 10% today and BLY up 28.6%.

All looking good for a rerate. On fundamentals still look low.

or Maybe some people read my post.

[winner69]

ORI blow the stuff up so they don't need shovels

Almost doubled last 3 months ... look at WOR thread

[STRAT]

This has got to be a good sign for the industry in general

[Serpie]

IMD up 10% today

Keep going IMD - my pick in the ASX comp!

[sharer]

Lewinsky asked: Are there any others that should be watched?

MND.asx Monadelphous has been one of my favourites for a while. A big firm.
Chart recently encouraging. Yield ~7% versus half that or less from the resource miners MND services. I think the nature of their business smoothes out the wild ups & downs of the miners themselves & the commodity markets. Same arguments as above also apply.

[Huang Chung]

Have a look at RPC, about to relist as RER - Resource Equipment Rentals. Under the guidance of Jamie Cullen, ex PCH. Going to have a 16:1 split. Shareholders get the opportunity to buy in at 20cents. Looks like a potentially good growth company, and follows one of my favourite investing strategies - back the jockey!

Thanks for that bit of info Mattyroo, I did quite well out of PCH, so I'm happy to look further at this one.

By the way, I think you'll find they're doing a stock consolidation, not a split.

[lewinsky]

Hi Serpie,
IMD is an old favourite of mine. Look back on the old posts, I originally got in at 12 cents. Sold out at $2.27 and brought back at 36cents. I have a lot of time for Bernie Ridgway the MD and his strategies have been well thought through.
They are trading at a pe of 5.87 so I still think they have some upside left.
Whilst it isn't a shoveller, I would keep a watch on TSO.

Someway to go here.

lew

[mattyroo]

By the way, I think you'll find they're doing a stock consolidation, not a split.

I know, don't know what my brain was doing when I typed that!

[Serpie]

Hey Lew!

Yes I remember your posts from the pre-crash days! Unfortunately I'm not riding the IMD wave this time, but I'm pleased that you're back for another round.

[COLIN]

I'm quite staggered (but delighted) at how suddenly and strongly BLY has shot out of the starting block in the last few days. Its not going to regain its former heights for a very long time but there's plenty of puff left yet.

[wns]

I read this the other day. Worth bearing in mind for those considering mining services companies. It talks specifically about Leightons and MacMahon Holdings, but I'm sure more than just those two will be affected...

www.theaustralian.news.com.au/business/story/0,,25617574-643,00.html

[whatsup]

Mattyroo, RE RPC/ RER, How can one take advantage of this rebirthing, If one buys on the ASX its the equivalent of .27 where as by the share offer its .20, is this correct?

[mattyroo]

Mattyroo, RE RPC/ RER, How can one take advantage of this rebirthing, If one buys on the ASX its the equivalent of .27 where as by the share offer its .20, is this correct?

As an existing shareholder I got the offer through the new company prospectus, I don't see anything in the prospectus of a record date, but, it kind of implies that the record date was 26th May. The offer closes on 26th June, so, unless you hold shares, your only option may be to buy on market.

Sorry to not be able to offer much more than that.

Jamie Cullen will hold >60 million of ~146million shares after relist, so he will well and truly have a vested interest in making this one fly!

[COLIN]

I'm quite staggered (but delighted) at how suddenly and strongly BLY has shot out of the starting block in the last few days. Its not going to regain its former heights for a very long time but there's plenty of puff left yet.

Gosh, golly! My (unfortunately relatively small) holding in BLY is now showing over 200% gain! And I'm convinced there's plenty more to come. Hop on board!

Some of these recovery type situations, where the fall from grace has been massive, can be very fertile ground for spectacular gains. CNP is another case in point - after doiing some careful research and coming to the conclusion that they are not going to collapse, I bought 100k at 9.5 cents a few weeks back and almost doubled my money by today, although they slid back a bit at the close.

[Huang Chung]

You had a look at SWK colin?

[COLIN]

You had a look at SWK colin?

Thanks, HC. Looks like it merits serious consideration.

[COLIN]

Thanks, HC. Looks like it merits serious consideration.

HC: I took the plunge and bought a few SWK and, lo and behold, I am already 15% up! Accordingly I am going to elevate you to the ranks of "Sharetrader Posters Worth Listening To"! (Now, that really puts the pressure on you to perform!)

My BLY have taken a little stumble, consequent upon their cash issue, but they'll be OK. In the "Shovel Supplier" category I have also bought back into RCR where something seems to be happening. Might also get some WOR.

[Huang Chung]

HC: I took the plunge and bought a few SWK and, lo and behold, I am already 15% up! Accordingly I am going to elevate you to the ranks of "Sharetrader Posters Worth Listening To"! (Now, that really puts the pressure on you to perform!)

My BLY have taken a little stumble, consequent upon their cash issue, but they'll be OK. In the "Shovel Supplier" category I have also bought back into RCR where something seems to be happening. Might also get some WOR.

Cheers Colin. Maybe I should retire now, at the top of my game, :D.

WOR has had a really good run......have you had a look at CLO? Low to mid 80s would appeal to me. (now I'm really pressing my luck).

[Huang Chung]

Update from SWK

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00982183

[COLIN]

I bought back into RCR mid-June (having lost a bundle the previous year) and have been delighted to see their upward progress - gain of 53% so far. Market liked today's announcement - probably the forward order book in particular.

[whatsup]

Have a look at RPC, about to relist as RER - Resource Equipment Rentals. Under the guidance of Jamie Cullen, ex PCH. Going to have a 16:1 consolidation. Shareholders get the opportunity to buy in at 20cents. Looks like a potentially good growth company, and follows one of my favourite investing strategies - back the jockey!

Heads on the move today up to .31 after settling at .25 post the reconstruction but the 31/12/2010 options at .20 are the best money ,leverage and all!

[COLIN]

Heads on the move today up to .31 after settling at .25 post the reconstruction but the 31/12/2010 options at .20 are the best money ,leverage and all!
Thanks for that tip. I managed to grab some options at 10, but not as many as I would have liked. Seems that others may also have been reading your post and jumped in too. Sellers have since all but disappeared.

Code is now: RGD

[whatsup]

Could be a simular type of story to FGE , .20 to $1.65 in 8 months or so but we need news of supply contracts first, what a tory then., Colin sell some of your IFT and buy some more RGDO's ,IFT wont run for awhile like RGD could.imho.

[COLIN]

Could be a simular type of story to FGE , .20 to $1.65 in 8 months or so but we need news of supply contracts first, what a tory then., Colin sell some of your IFT and buy some more RGDO's ,IFT wont run for awhile like RGD could.imho.

I might just be tempted to do that. To be honest I am a bit disappointed with IFT progress of late, notwithstanding that I believe Mark Bosievski (sp) will unlock considerable value from them in the next year or two.

Re FGE: I haven't been following that one but what a remarkable rise, and there would seem to be a lot more steam there yet, just glancing over their metrics, but it would be scary to come in at this level now.

[COLIN]

Could be a simular type of story to FGE , .20 to $1.65 in 8 months or so but we need news of supply contracts first, what a tory then., Colin sell some of your IFT and buy some more RGDO's ,IFT wont run for awhile like RGD could.imho.

Options suddenly up 26% yesterday (heads 21%) but with no news. Presume they must have appeared on some tip-sheet, or something.

(W: Yes, I did get rid of a lot of my IFTWB's - should have dumped the lot!)

[whatsup]

Options suddenly up 26% yesterday (heads 21%) but with no news. Presume they must have appeared on some tip-sheet, or something.

(W: Yes, I did get rid of a lot of my IFTWB's - should have dumped the lot!)

Well done IFT will run once the ENE saga is sorted, but with yesterdays rise for RGD ( on a down day ) itsa great sign but IMHO RGD wont move too far until the new figures come out for their earnings, and then it will be rerated as the earnings come from the "hot" sexy sector but the market wants to see runs on the board before they rerate it , but by then it may be too late for investors .
.25-.30 is the bottom for the heads and the upside is a $ + imho.

[Huang Chung]

Mattyroo...finally picked up some RGD....but at twice the price from when you first posted on them :confused:.

Still, Jamie Cullen did well for me with PCH, so I'm confident he'll do a similar job with RGD. Looks like a nice growth strategy as well....expand to the east coast from their WA base, and then into Asia in maybe a year's time. Also like the fact that they have just established a seperate oil & gas division to really capatilise on the opportunities in that market.

Low gearing as well.

A bit of background info:

Company website:

http://au.wrs.yahoo.com/_ylt=A0KjqmgdpWxLD2kBhSI36At.;_ylu=X3oDMTExN2szY25 nBHNlYwNzcgRwb3MDMQRjb2xvA3NwMQR2dGlkAwRsA1dTMQ--/SIG=11fauqd3j/EXP=1265497757/**http%3A//www.rergroup.com.au/

Chairman & CEO adresses to AGM:

http://www.rergroup.com.au/article_files/12589405072009%20AGM%20Chairman%20and%20CEO%20Addr ess.pdf

AGM presentation:

http://www.rergroup.com.au/article_files/12589634382009%20AGM%20Presentation.pdf