Mike, Keep your eye out on BGL it (historically) has had a...

Mike, Keep your eye out on BGL it (historically) has had a tendency of drifting lower and then consolidating after a strong run in its share price. I think the next catalyst is when BGL management come out and provide more specific FY12 guidance in the first quarter of FY12 (which is only a few months away). We are both following LGD and BSA. Ivanovich made a spectacular call on LGD when it was in the 12 cent zone 18 or so months ago. I unfortunately didnt buy however it looks still to be exhibiting value. I have posted comments on the LGD thread recently. I am waiting further as it would appear that the HHL overhang is still effecting the price. BSA also looks promising although as a contractor it is a much riskier beast I think than say BGL. I've been attracted to the telco space in recent times purely as a consequence of the value proposition, taking positions in MTU (first acquiring at 80 cents - but selling too early) and VOC ( picking shares up between 90 cents and 1.35). In terms of current stocks that I think are most promising I would include BGL and MAQ in the short term with a bias towards MAQ(given how BGL has run recently). MAQ has some truly incredible characteristics and is cheap on a number of metrics, particularly EV/EBITDA. Its run hard but that by itself shouldnt put you off. I also really like SRX however I think that will take some patience - however the structure in place is excellent and the possible growth prospects simply staggering. I would say VOC, which has been a wonderful investment so far, is a near term hold, however long term I think it has a bright future as well. My investment bias is to find smaller to mid cap companies that are trading on lower foward PERs (or low PEG ratios), with a good near term (say one to three year) earnings growth prospects. If the companies have patchy coverage by analysts then great. Also if the company is approaching a certain market cap, like say 50 mill, 100 mill or 200mill that can be useful when considering the likihood of PER expansion as the stock gathers greater attention from the investment community. Even better if its heading towards inclusion within an index (although often a lot of the massive gains will have been enjoyed from me experience). I like companies where management has material skin in the game and are approachable and accesible. On top of that cashflow generation is important as is a well constructed balance sheet (i.e. not too much leverage). I see a number of the stocks you are interested in are engineering/mining services companies. Whilst some people have made a lot of money in that sector, I have a bias towards avoiding the sector given the nature of contracting (i.e. a bad contract can have a big impact) and also concerns about the sustainability of the current mining boom and commensurate CAPEX spend. I wont forget how quickly CAPEX spend evaporated during the GFC with many share prices of the pick and shovel companies falling off a cliff as a result. In saying that however I am following VMG with interest as a potential turn around TRADE as I expect tax loss selling will crunch the share price (even further - the fall so far has already been spectacular) as we lead up to 30 June.

Would be happy to go into further details if you would like of this thread and over email: [email protected]