Brierty - BYL

[Lizard]

Thought I had a thread on this one, but perhaps I never got around to it... maybe not the best time, since a profit upgrade to $9-$9.5m NPAT has just been announced, boosting price to 36cps. Has been trading cheaply - probably expected to be bumpy - so this still constitutes a forward P/E of 4.2. However, market is tough for these cyclical stocks at the moment and probably expected to be hard to match earnings in coming year.

[Lizard]

Result out as forecast at $9.4m NPAT. Currently sitting at 39cps, so PE remains under 5. Final div of 1.75cps will take yield to 7.1%.

Forecast is positive for growth, but how much growth is possible after such a strong result is the question? Looks cheap here though and 70cps looks achievable. Not that I've managed to ever get around to buying any yet.

[Joshuatree]

Hi ,got some at 30c yest nice bounce today along with most 100% mining services/drillers.. Re only a quarter of BYL's business comes from mining service contracts and a big order book locked in. Div to come.Looks like it got thrown out with the bathwater but time will tell.

[mark100]

I actually sold my shares today that I had been sitting on the past few months. It fell too fast yesterday so was happy to get 35c today on the bounce. A bit frustrating that the stock didn't respond better to the FY results. It's very cheap but sentiment will probably be terrible in this sector for a while. Will keep it on the watchlist

[soulman]

I actually sold my shares today that I had been sitting on the past few months. It fell too fast yesterday so was happy to get 35c today on the bounce. A bit frustrating that the stock didn't respond better to the FY results. It's very cheap but sentiment will probably be terrible in this sector for a while. Will keep it on the watchlist

Looks like a dead cat bounce for the pure mining contractors. I just got some more MND today as I can see that they are more diversified these days. Only for short term play anyway.

I don't see any positives for this sector either Mark and I hope I can get out of MAH and MND at a higher and more attractive price.

You buying anything Mark?

[Lizard]

Finally bought some of these the other day at 43.5-44cps (ex-div). Seemed like they were still relatively cheap after recent result. Can be hard to judge with bumpy/contract stocks though, but seems to me they could still go to 70cps+ without needing much news.

[Lizard]

Well, that would have to be one of my not-so-good timing decisions... have now bought more at 23cps - looks like support coming in on depth, but that can often prove fleeting. However, no signs I can find that any of the major contracts have suffered issues - although their non-mining revenues are still somewhat dependent on mining companies (e.g. rail project for FMG, housing project for Rio). Debt looks all hire purchase. The only caveat is that I don't often buy going into a situation where profit is likely to be lower in the coming 12 months than in current... just looking too cheap here.

[Lizard]

Has bounced as far as 28cps in recent days. So far, no profit downgrades... so should be on track for a good year and valuation comes out around 48cps.

However, difficult to see FY 2014 being anything but lower, so the only rationale for buying is a "value-bounce" driven by divs in the short term. Possibly will then see another fall-off in price for the following 12 months until the market feels confident that order book and margins have had a chance to bottom out.

[Lizard]

Averaging down has worked this time - nearly back to break-even overall here at 30cps.

Hoping with a good FY and div that I can get some more for my efforts though.

[Corporate]

I bought a few BYL today. Looks cheap and I'm banking a major resource recovery in the next 2 years. BYL is well placed to pick up additional work.

[Lizard]

It's interesting that BYL listed with 110m shares at $1/share at the end of 2007. Revenues at the time were $157m and with NPAT at $4m.

Revenue is now at $252m for FY2012 with NPAT at $9.4m and on track to rise in 2013. There are still 110m shares on issue, but price is less than one third at 30cps.

[Corporate]

Very good point Lizard. The more I read the more I am a fan of BYL! I think the company has just slipped below the radar.

[Joshuatree]

NPAT $10.2 mill up re 8%
D/Y re 10% Div up re 9%
Mkt cap re $32 mill
Share price up re 14%
Gearing down from 36 to 30%

[Lizard]

Good result and market has rated it, ignoring the part at the bottom of the presentation that states that "growth is unlikely" in the coming year. Currently up at 36cps. Value up to 45-50cps, but I'm not sure how far I'm prepared to hold it in a "no growth" (more likely negative earnings growth?) environment. Final div 1.75cps (total 3cps) + franking should support it here or higher for a bit anyway.

[Corporate]

What a result in the face of a terrible environment during the last 6 months

NPAT $10.2m putting BYL on a PE of less than 4

OCF $26.8m

EBITDA $30.6m

Zero corporate debt

EPS of 9.28

Check out slides 6 and 7 in particular.

Good spot Lizard re growth. I still think this has legs for another 10c though

[Lizard]

Good spot Lizard re growth. I still think this has legs for another 10c though

Yes, you would think another 10cps would on the cards - but if the market got freaked out before this result (which was predictably good), then it has more reason to freak out afterwards when outlook is realistically going to be negative for a year or two? Still, should be some leeway until it goes ex-div... a little more cautious after that unless they can announce some more contract wins.

[Lizard]

Nice strong finish for the week at 37.5cps. Goes ex-div 13 Sep, so that should give it time to get to 45cps by then?

[Corporate]

Nice strong finish for the week at 37.5cps. Goes ex-div 13 Sep, so that should give it time to get to 45cps by then?

I certainly hope so.

I'm also surprised with the growth statement at the end of the presentation. I am more bullish on the mining sector and with the price of resources recovering and the AUD decreasing I see increased investment in new mines over the medium term.

[Lizard]

Not much happened in BYL for the 8 months since last post, beyond a couple of solid dividends, but the $300m contract announced after close may help. Share price currently at 35.5cps, putting market cap at $40m.

[Joshuatree]

Finished at 40c friday. 12 month high was 49c, low 37c div re 8%. Moving earth can pay off in spades, just aint sexy?

[Huang Chung]

Wish there was more info on the margin for this Rio contract.

[Lizard]

Still sitting at 40cps - and it's always got to be a slow grind in an unpopular segment... but today's update bodes well:

Following this contract award, Brierty has work in hand of approximately $570 million of which $250 million relates to work secured for the 2015 Financial Year.

This would seem to suggest that they are at least on track to keep pumping out the same sort of profit levels for a couple more years and possibly even increase the divs (currently at 7.5% + franking), which should support the share price in the medium term.

[Lizard]

Possible break-out today to 43.5cps. Would expect result and forecast to support the price here or higher.

[Joshuatree]

Looks like Maca may have more to sell which could suppress the price again.

[Joshuatree]

Forager may have bought Macas' remaining 8.65 % . S/p lifting.

[Lizard]

Nice run up today to 52cps after a nice NPAT outlook for 2014 ($9-$10m) and revenue projections for 2015 (up 28%). :)

[soulman]

A very nice outlook Liz. On a PE of 6 and div yield of 5.8% FF. Future PE could be lower and a higher div yield based on the SP of 52 cents.

[soulman]

Today MLD announce a nice profit this year 'well ahead' of FCP. Outlook for 2015 also very bright. Just like BYL forecast. This should bodes well for MND, GNG and KOV.

[Okebw]

8 cent special dividend in addition to the one already declared. Incredibly happy (and surprised) holder .Just doubled my holding

[Lizard]

Reduced my holding at 64.5cps today, since I can't use the franking on the special div. Who'd have thought a contracting company would have ended up providing one of the better returns of the year?!

6250

[soulman]

Reduced my holding at 64.5cps today, since I can't use the franking on the special div. Who'd have thought a contracting company would have ended up providing one of the better returns of the year?!

6250

What a difference between the 2 contracting coy. MLD declare a special dividends of 25 cents FF and SP declined 10% whereas BYL does the same with 8 cents FF and goes up 15%.

Am I missing something??