Small volume today...looks good.
Sell depth looking thin! $9 easily!
1. CHEP's 'magnificent five' EBITA enhancement program is working and positively contributing NOW, not maybe, but is NOW.
2. CHEP's ability to rapidly lift US pallet turns is highly undervalued.
3. Much of the earnings dilution from the DLC (5%), the divestment program (5%) and CHEP's 'growth' investment (3%) is now over.
4. CHEP, Cleanaway and Recall now represent 90% of EBITA, not 65% like pre the DLC - the lower ROE businesses are gone (finally).
5. After focusing on 'clearing the decks' and 'transiting the business' for the last 18 months management is now finally in the position to start focusing on growing EPS and managing up the returns.
'Any' positive news flow on 28 August should be well rewarded by the market.
GIDDY UP!
BIL
brambles industries limited
