this Naos group just keeps on buying a bigger slice which is heartening.
I guess the risks with this stock are the class action legal case with allegations made by contractors. I have been trying to work out the timelines on that and suspect a verdict is still probably a couple of years off. however if the Tandem group trial gets a verdict then it will likely sway the market as to BSAs prospects of winning/losing. I can't seem to find the latest on the case. BSA's legal bills look substantial as per the quarterly!
the positives in my view are that the fundamentals of the business are very strong, good cash in hand, solid management ... and they have flagged intention to do share buyback of up to 43Mil (if I have understood correctly?) over the next 12 months on market.
it would be good to understand the motivations for the buyback. my worry is that they know a storm may be coming and so the need to protect shareholder value by buying on market- is it akin to hedging? or is it simply to increase the value of existing shares for the current shareholders?
Lanyon and Naos own approx 50% of available BSA shares - presumably they have access to management and understand the business intimately. they have both been buying up more shares and taking a bigger stake over the last 12 months .
on summary it seems to me this is headed up for now with the business outlook strong, major shareholders buying in at around the current price and a potential buyback on the horizon. one of the risks to this trajectory is the class action case and any outcome of perceived similar cases.
all IMO, DYOR
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