Varel and Boart are similar but differentminerals which Boart...

First 17 Last

Share
Profile

Follow
kawto

20 Posts.

2

01/04/19

11:35

Post #: 37949024
Share

Originally posted by Bullspike: ↑

I'm not familiar with Varel and the Sandvik TO. I'm not sure what Boart is worth, but they are making a loss and have a mountain of debt which doesn't bode well for valuation. They certainly have some nice Mercedes-like assets, but if they can't make money, they're a liability. It's potentially better over-paying for a Kia that can at least make a little money.

It's hard to know what's happening regarding Boart and vested interests. I say that if Boart was a local operation and not consolidated all over the world, then a TO would be certain at such a cheap price (even with 26B shares). Many companies that are dirt cheap after a bail out get taken over. Ares may be capping price for reasons related to a TO, but having said that I think price would be very low anyway because many buyers won't touch it with 26B shares issued and bad fundamentals. However there would be some buyers stepping in now based on much improved gold and copper prices since the lows of 2016. If Ares weren't selling, on a hunch the SP would probably be circa 1.5c, based on better forward conditions and the relative share price history.

I agree with your logic though, if Varel fetched 740M as a basket case with less assets than Boart, Boart could fetch much more. A barometer of sorts. The other most important issue is forward looking conditions, meaning that if industry were bullish on the future of oil and gas, it would add a big premium to Varel price.

"Did they approached Boart before buying Varel ???"
If they are primarily in the oil and gas game, Boart may not be a target for them. I think oil drilling is a different beast to metals...but could be wrong.

Expand

Varel and Boart are similar but different

minerals which Boart focuses on is considered a different industry to oil and gas

boart had the market by the balls with wireline systems but there's alot of equipment from China now, Boart is the Mercedes of mineral exploration equipment... their drilling services division is debatable...

BLY Price at posting: 0.4¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 6 more messages in this thread...

First 17 Last

Add BLY (ASX) to my watchlist

Varel and Boart are similar but differentminerals which Boart...

Featured News

Dominos looks tasty and tempting, but could be too spicy and even dicey

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

Pearl Gull Iron snaffles REE project in Chile, noting geological echoes of China

ASX Market Close: Unemployment dips as index climbs | 13 June, 2024

Lightning spots additional pegmatites during first Brazilian visit

Triangle gets approval for Perth Basin carbon sequestration project

Whitebark launches $1.5M capital raise to progress QLD geothermal assets

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

Maiden production at Alta Mesa puts Boss on the charge for 3Mlbs target

Telix dips as pharma giant abandons US IPO for NASDAQ listing – despite record run

Varel and Boart are similar but differentminerals which Boart...

Featured News

Top Stories

Dominos looks tasty and tempting, but could be too spicy and even dicey

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

Pearl Gull Iron snaffles REE project in Chile, noting geological echoes of China

ASX Market Close: Unemployment dips as index climbs | 13 June, 2024

Lightning spots additional pegmatites during first Brazilian visit

Triangle gets approval for Perth Basin carbon sequestration project

Whitebark launches $1.5M capital raise to progress QLD geothermal assets

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

Maiden production at Alta Mesa puts Boss on the charge for 3Mlbs target

Telix dips as pharma giant abandons US IPO for NASDAQ listing – despite record run