breakout, page-132

Found the article in Sydney's Sun-Herald (Investor section). Doesn't seem to be on-line yet.

Good publicity --- but if I was editing I would have made a few changes (but hey I'm biased).... eg the reference for example to "In its short life since it was floated in 2007" as it is a well-established company around 100 years or so albeit a private coy.

The article notes:
Advantages: Resources recovery, strong brand, low debt
Disadvantages: Loss making, currency risk, speculative
Verdict: Written down by the market with little support from brokers but is well placed for the next boom in exploration.

With cost cutting, repayment of debt and improved demand surely Boart will be back in profit in 2010 albeit not the profits of previously (so loss making comment not really relevant given it's now late Nov 09). Currency risk a minor disadvantage with earnings in a basket of currencies and a weak US$ serving to drive up commodity prices and hence demand. I disagree with "speculative". Junior explorers without earnings are speculative. This is a dominant well-established player in its industry, well capitalised, low debt, and 25% market share. It's speculative - in that there is a big upside to its share price when this industry reverts to normal levels of activity.

"Little support from brokers" is also questionable. A number now have this company as a strong buy.

I would have liked more insight into future demand for rigs (and margins) and the outlook for 2010. Hopefully Boart itself will make an announcement (I think it's next 6 monthly report is Feb but an earnings upgrade before then would be great).

In the short term (ie next few days) I think there will be weakness in Boart's share price. See the BLY charts published by others in this stock forum and on ASX - General in the last day or two (thanks everyone who does these, I really appreciate them). I don't see this as stock specific - I think there is short term weakness in the share market generally. Some chartists are seeing a fall back in the ASX to 4500/4400 levels. (Having written this, we can now expect Boart's share price to rocket on Monday).

But this company is overdue for a good break out. Hopefully not too far away. Here's hoping it's a great Christmas for us all.