- confirms my previous expectations for BDL (by itself) on the issue of growing turnover at reduced margins. - confirms likelihood of big wins on Gorgon (although earthwork jobs like this are only "one off" events, they WILL float the combined firm though at least another another year of the GFC. - USD debt (38%) is sort of good in that the USD is on the way down. - Discounting 2008/09 as a horror year, the "averaged" PE remains LOW. This means BDL remains a buy, particularly IF ASLs superior control over costs and quotations is applied.
Negatives
- When the USD tanks it will take a lot of global demand with it. Commodity prices will tank shortly thereafter (if priced in anything other than the USD). I thus strongly support the ASL strategy of seeking and locking in more stable long term contracts where possible (albeit at a low profit margin). - holding onto a terrific firm in the knowledge that the ASX is overpriced (on one hand) and not wanting to realise substantial gains (on the other) for the benefit of the Tax Office!
