Hi allI located an article dated May 2007, just before the GFC...

Hi all

I located an article dated May 2007, just before the GFC took its toll and gave me further confidence in what this stock can do given time...

The current SP is a fraction of what it was in 2007 so if your a LT buyer this would provide a greater upside than saying holding one of the major Blue Chips...

Also for ST traders of timeframes of 2-3 months, now would be an opportunity to buy at the current levels.

I appreciate all feedback and thank-you for reading :)

P

http://www.mysharetrading.com/2007/05/28/boart-longyear-bly-share-trading-recommendation.htm

Boart Longyear (BLY) have a maintained Outperform recommendation and a 12 month share price target of $2.60 from Australian Stockmarket analyst Macquarie Research Equities. Two weeks ago, the analyst initiated research coverage on Boart Longyear, the $2.3bn drilling services provider that floated in early April, with an Outperform recommendation. Since its debut, the stock has gained 15%, an impressive performance given over this same period the broader market has gained only 3%. The following article reviews a number of the growth initiatives They expect Boart Longyear management to pursue over the next few years. While Boart Longyear (BLY) is expected to generate strong organic growth as the current cycle continues, it is also pursuing a number of growth opportunities. These initiatives are expected to add to growth and also position Boart Longyear to withstand any cyclical downturn better than its competitors. Key account management: Boart Longyear is undertaking a 'key account management' initiative, in which it is seeking to reach agreements with a number of the top global mining companies. Presently, no one customer represents greater than 7% of its drilling services revenue. Boart estimates that it currently has at most 20?25% of most of its key customers? drilling spend. Boart are targeting increasing this level of penetration. In the current environment, demand for drilling rigs outstrips the supply of rigs, notwithstanding an increase in new rig manufacturing output. Boart Longyear, with the largest fleet, and as the no.1 manufacturer of coring rigs, is best placed out of all drilling services companies to be able to provide sufficient rigs and operating standards. Additionally, safety continues to increase in importance for mining companies. This benefits the larger service providers to mining houses, which are better positioned to invest in training and safety programs for staff. Assuming Boart Longyear is successful in developing its key account initiative, it is likely to require an expansion in its rig numbers. This will come from the addition of new rigs, but also from the re-deployment of rigs that are on low volume and low yielding contracts. Offsetting the requirement for significant expansion in the rig fleet, will be the ability to improve overall utilisation of the rigs. This will depend on Boart Longyear working closely with the mining companies to understand their total drilling requirements. Geographical expansion: They estimate that around 65% of Boart?s revenue is generated from Canada, Australia and the US. Major mining houses are directing increasing amounts of their exploration expenditure into previously under explored regions such as Africa, Russia and South/Latin America. Boart is targeting an increased presence in these markets. Expansion into new market segments and new products: Boart Longyear (BLY) has a significant opportunity to grow its business in markets such as coal seam methane drilling and the oil sands market. Similarly, it has opportunities to increase market share in the water and environmental markets. Product development continues. Procurement and sourcing opportunities: Boart Longyear has introduced a number of internal programs to improve its operating efficiency. A key program has been to focus on procurement and sourcing opportunities in order to leverage Boart Longyear's global purchasing power. Expanded manufacturing capacity. Boart Longyear is undertaking a number of de-bottlenecking programs at existing plants to provide capacity to satisfy strong demand for its drilling consumables and rigs. This expansion is expected to deliver of high return on invested capital, and provide Boart with sufficient manufacturing capacity for the next few years. It is also expanding production in low cost manufacturing regions, with further capacity being added to its China plant. Boart Longyear will continue to benefit from increased exploration spending, but also is undertaking a number of initiatives to supplement its growth. The analysts maintain an Outperform recommendation on BLY, and a 12-month share price target of $2.60.