BOL

1.72%

14.8¢ boom logistics limited

I agree other than the fact that this new crew are very focused...

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Autosime

20,536 Posts.

2049

04/07/23

11:50

Post #: 68608125
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Originally posted by BerserkWarrior: ↑

Autosime, I like reading your posts and your enthusiasm on the stock. Have to disagree with you though on the 'fleet refresh' idea though. That's exactly what has been cruelling the share price to a large degree over the years. Their ROIC on new kit is marginal over the cost of capital. Sometimes chasing new work to enlarge a business is counter productive....the price of that growth does not translate to a more profitable business...nor a higher share price which is what we have here. The capital intensity of the business means you have to sweat the assets very hard.....idle kit kills it & despite management saying they're utilisation is maxed out...it isn't. Yes it's higher than historical numbers but nowhere near at full utilisation. If PE ever bought the business, I'd vouch the last thing they'd do is be 'refreshing (the) fleet'. They'd cut the growth capital budget to pieces & the interest & depreciation savings for 3-4 years would drop straight to the bottom line sending statutory profits sky rocketing.....a beautiful setup for a future relisting. Of course you can't capital starve a business like this forever....things break & wear out but so far they haven't managed the growth capex sensibly at all and that's why I'd suggest the share price is at 11-12c rather than 24c where it could & should be. This could be so much better for shareholders than it is. Management need a PE mindset, not the profitless growth one they have & continue to be on

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I agree other than the fact that this new crew are very focused on margins and chasing only profitable contracts
obsolete assets earn zero, at the very least the dollars can be utilised to pay down debt

BOL Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 14.8¢		Change 0.003(1.72%)		Mkt cap ! $62.19M

Open	High	Low	Value	Volume
14.5¢	14.8¢	14.5¢	$17.38K	118.5K

Buyers (Bids)

No.	Vol.	Price($)
6	109904	14.5¢

Sellers (Offers)

Price($)	Vol.	No.
15.0¢	885472	6

View Market Depth

No.	Vol.	Price($)
5	64250	0.145
7	574308	0.140
5	621423	0.135
2	15349	0.130
2	206000	0.125

Price($)	Vol.	No.
0.150	885472	6
0.155	969172	7
0.160	100000	1
0.170	120683	2
0.175	14770	2

Last trade - 15.57pm 01/11/2024 (20 minute delay)

BOL (ASX) Chart

I agree other than the fact that this new crew are very focused...

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I agree other than the fact that this new crew are very focused...

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