Yeah - you can see that insiders likely had a go. I think this...

Yeah - you can see that insiders likely had a go.

I think this is profoundly good news, other than it is difficult to tell the value of any possible contra deal on rental pricing for MAH ,and there was mention of some mobile equipment going to them - I imagine more busses and people movers - whatever they are called. But the fact they have simplified the business and hopefully will not be trying that diworsification out again under current management sounds like a big risk reduction. Might be worth $15m extra EBIT per annum over time, and provide more management focus on the main business. Fancy having to think about some complicated crap all the time that is not the main business, and where you have no advantage over competitors. Also reduces the risk of another big non payer.

One solution to manpower shortages is probably using bigger and better gear. Works out well for new contracts that rates are higher, as rental competes with borrowing to buy.

When they bought PNP they said they bought 54.4 worth of mobile equipment (or something like that), and paid 72m, so roughly a net $16m non mobile equip, and gaining $10m of gear on the sale - so possible loss as small as say $10m? (not counting the receivables non -payer news we know about - who gets that remaining $12m if it is paid?) Again some mobile equipment seems to be going to MAH - not sure of the value.