In preparation for commencement of trading I thought I would put a very simple case why I think Boom presents a low risk 50% upside this year 1 one is buying net assets at 69 cents in the dollar with the assets becoming younger due to the asset recycling strategy 2 due to carried forwarded losses increase in EBITDA to hit the bottom line making cash flow post asset purchases 20m 3 Gearing on the lower end of desired level so this cash flow can only be allocated to dividends, buy backs or acquisitions, all of which will be positive for SP 4 Boom is primed for a long term elevated earnings cycle due to massive infrastructure spend for yield likely to be 8-12 % if current SP and company can provide a combination of income and growth
BOL Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
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