I suspect DGL will end up like toll as well, putting a list of...

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Billben157

55 Posts.

27/10/21

06:16

Post #: 57096815
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Originally posted by Dajohnno: ↑

Big difference between SLH and DGL...DGL have put together 5-6 acquisitions since May listing and I understand have another 2-3 they want to close and announce pre Xmas (from one of the recently acquired companies). They seem to have a real focus on their acquisition strategy.

SLH purchased Rocke Bros transport pre float so they actually made money. Pre rocke bros they lost money the prior 3 years. For SLH to attract anywhere near the multiple DGL have they need to not only deliver results on their base at float business that knocks them out of the part but they need to piece together a strong and strategic acquisition strategy. I am not sure they can do either at the moment.

if you recall the old Toll days...40+ acquisitions and a PE multiple in the high 20s...it was like shelling peas for them. Pay 5-6 times ebit and put it into the listed entity at 25+ TIMES. Didn't matter that the businesses were not working together and often driving prices down against eachother...that was someone else's mess to deal with...enter Japan Post! Hahahaha

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I suspect DGL will end up like toll as well, putting a list of businesses together that don’t work. I have full faith in the SLH management and board having been a supplier of theirs for years. I like what they do and will continue to invest heavily in them. Let’s all wait, time will tell!

SLH Price at posting: $2.28 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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