Imo this has been in bargain territory for a while now, so I've been ever so quietly accumulating. Minimal net debt, record orders and 2 sound business sectors. For various reasons I'm expecting a good increase in reported 1st half performance, compared to the same time last year.
I find 30 June Note 18 is useful. It gives BSA's internal prediction of the cash to be generated by each business in 2011 (the % movement). Both budgets were marginally negative at the time of preparation. However, since then Building Services secured the largest single government HVAC contract in Australian history. And the NBN looks likely to proceed with Contracting Solutions gaining subcontracting work. Was not surprised to see positive predictions from the AGM.
Also noted an interesting comment from UGL's CEO, Richard Leupen, at their AGM. "We'd like to be .... and deliver more building services like heating and air conditioning."
BSA is quite small fry, but Leupen is a serial acquirer and wants to double the size of UGL quickly. I intend to be a long term holder, but it's an interesting possibility. BSA did consider selling itself at one stage, but opted to build value with the 5 year "Augmentation Strategy" out to 2012.
Sellers looking a bit scare ATM.
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