brandrill announces 82percent profit increase , page-4

Looking through the report you would have to think that management were a little flaky, not a lot just a smidgen (unlike PPPs), The other thing the market would not like is the increase in shares on issue, looks like they spent their cash too fast in the second half, ripped through over $14mill, hopefully a lot of that was either payment for Strange, or an increase in the amount of drills.

Outlook looks good, with an order book of over $200mill you would expect EBIT to be +$28mill, also debt looks not high but on the higher side.

There are three possible outcomes, if they stabilise and accrue cash they can buy back some shares creating shareholder wealth, they could be taken over (AHS will have $100mill in cash in six months), or stay the same.

As for the share price, BDL may be wearing a little leveraged share broker collapse hangover still, maybe. Also, people after a quick buck who bought at 19c will be selling into any rise.

Still, if the private equity firm paid 25c for their shares they must think it's around +40% undervalued.

Regards.


Regards.