16 days until we hear full year 2011 earnings, page-12

I have shares in both Beach and Boart Longyear. Both are around the same value at the moment, both have a long history. Beach pulled in 50 mill in the last quarter which was seen as a monster result, and Boart has pulled in $356 million in earnings for the year.

I'd say if Boart are going to increase their EBITDA by 27% I may have to switch some more capital from Beach over to Boart.

Over 450 mill EBITDA for the next year would be enormous and is around a quarter of our current market cap.

Surely Boart if they're growing at that rate would warrant a higher PE than 4 ? Usually 12-15 is the norm, which would see BLY back up around the $ 12-16 which I think would be fair value at the moment.