Originally Posted by
Huang Chung
As much as I would never want to underestimate SNL management, I'm struggling with the BH's level of optimism right now.
Mining seems to be going from bad to worse, and we have seen updates by the likes of Bradken and Austin Engineering about how the miners are deferring expenditure wherever they can. Maxitrans seems to have been caught on the hop, with their biggest parts store in Gladstone suffering badly. The drought hasn't abated either, with talk we are moving into an El Nino weather pattern, which should mean more dry weather. I was also having a look at Automotive Holdings (AHE) the other night, and their refridgerated transport division also seems to struggling. Bottom line seems to be that its tough out there in trucking land right now.
Steve, you might be right about NZ. Higher Kiwi/Aussie exchange should help when SNL repatriate those NZ profits back to Australia, but, NZ is only about a fifth of their business, so are the gains in NZ sufficient to counter the tough conditions in their home market? Probably not.
Maybe Multispares is just creaming the opposition. I've got no real way of knowing though.
I must say though, the SNL shareholder base is very resilient. Never seems to weaken from the low to mid $2s.