long term proposition

Volatility may remain until we get a prelim report next week me thinks (or rather me hopes). Some points:

1. Looking at previous balance sheets BDL looks to have been wasteful. The expenses side of the income statement is higher than industry averages. The company reports that it is trimming costs - a good and absolutely necessary sign IF it is to be valued alongside its peers. I understand that RCF can add their expertise to the house cleaning task. Assuming coasts are actioned, there is no reason to assume that BDL cannot be cash flow positive for 09/10.

2. BDL should tidy up the balance sheet before paying dividend - if they want people like me to invest long term. The Beta needs to come down.

3. The order book is no longer a risk for the next 24 months IMO. I see a good order book can be an investment haven in times of commodity price volatility. As another poster said there is little downside risk at current SP levels.

4. IMO 07/08 FY figures are a reasonable benchmark for considering PE in a round about manner. The market will forgive a single horror year. If you check out the PEs of the likes of Ausdrill, Swick, Mermaid Marine, Neptune Marine and WOR, I would challence anyone to find a cheaper buy.

So in a nutshell I may be here for the longer term.

Cheers
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All specultation. Not investment advice.