The revised DCF valuation is now $0.61 per share (WACC 13.0%).
in time it will be on industrea website.
Contract win, site tour & CB buyback...
In the past 10 days Industrea (IDL) has announced a $21.7m extension at
Mt Thorley Warkworth, conducted a HunterValleysite visit for 25
institutional investors and brokers and bought back $17.8m of its
convertible bonds.
The Mt Thorley Warkworth contract extension was for the hire of 7 of
Huddy's Caterpillar 789C dump trucks. Initially hired in Feb 2009 for 12
months the extension is for a further 24 months out to Feb 2012. It
should be noted that this is not the only gear Huddy*s has on the
RIOsite with the most recent addition being a brand new 550T excavator
that was added in October 2009.
The site visit went well with the key takeaway being that AMT, IME, PJB
and WADAM are all having a strong 2HFY10 on the back of the $10m/month
sales rate that has been maintained with Chinese customers over the past
year.
IDL has bought back $17.8m of the $70 convertible bonds. This leaves
$52.2m of the bonds remaining at a conversion price of $0.39 (133.8m
shares on conversion). The bonds are convertible/redeemable on 28 March
2011.
With the bond buyback OMhas made some adjustments for interest expense
and dilution (OMassumes conversion of the remainder in Mar 11). As a
result fully diluted eps increases in FY11 and FY12 by 4.2% and 4.3%
respectively.
The revised DCF valuation is now $0.61 per share (WACC 13.0%).
IDL continues to trade at mid-single digit multiples (FY11 PERof 6.9x).
OMexpects that this 50% discount to market will be eroded as the market
gains confidence in the earnings profile and develops a greater
understanding of the business post the introduction of meaningful
segment information. OMcontinues to recommend IDL as a BUY.
- Forums
- ASX - By Stock
- IDL
- new ord minnet research report
new ord minnet research report
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IDL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
MTL
MANTLE MINERALS LIMITED
Nick Poll, Executive Director
Nick Poll
Executive Director
SPONSORED BY The Market Online