Not sure about you. But I'd be happier to see earnings growth predicted to come from their biggest (albeit mature) market - Australia. I've read all their latest press releases (and acknowledge the institutions favour them) but it appears all their local manufacturing plants are old, outdated and still require huge capital outlays to again be a force to be reckoned with (versus the China and India behemoth manufacturing industry that can deliver product – including import duty 20% cheaper ?) They cash splashed in China to lower the rail cost base, but that was fraught with opportunism - in that they had to let senior people go for "being opportunistic" I'm a layman when it comes to results but can't help extrapolating the last 12 months worth to mean we've ' sacked a whole lot of people in the US and realised the UK business we bought wasn't worth the UK union problems we have to deal with and the stake we took in CMS exposed us to a rather large inventory hit. And while we’re on the subject of hidings to nothing – our scrap business that is supposed to lower input costs – butts heads with Sims, the biggest global player,( talk about piss*ng against the wind) We've also been through two 'Rail' GM's in 12 months (biggest source of revenue...) and the CEO has just got a 35% pay increase. Let's not forget that the whole business model is based on "differential" When there is a solid core of investment bankers and analysts that boast foundry engineering or secondary metallurgical qualifications in their briefs that can actually define a mature differential market, I might think about their recommendations.
Just my opinion and should in no way be taken serious.
BKN Price at posting:
$6.75 Sentiment: ST Sell Disclosure: Held
