upward movement, page-7

Suspiciously high volume...there are reports that despite management's protestations that the offer on the table is fair and resaonable.


PLAYING COY SMH yesterday

"Boom Logistics has avoided the embrace of an Archer Capital bear hug for the last nine months, and there seems little intention to change the strategy now.

While many companies see the timely release of upbeat earnings guidance as a useful addition to a valuation debate, the crane operators at Boom are steering clear of meaningful guidance for 2011.

The company has released 2010 numbers, with profit of $4.1 million in line with expectations. However, with Archer's indicative offer of 52 a share valuing the company at about $240 million, it would take a steep improvement in profit for continued rejection to be justified on standard valuation metrics.

Still, there's no sign of shareholder unrest over Boom's refusal to engage with its suitor. And Boom has let slip that crane wet hire use was 81 per cent in the June quarter, while group revenue topped $1 million a day for the first time since December 2008.

That might buy management more time to prove up its strategy of moving away from hourly crane hire in capital cities, to focus on industrial services and major projects."

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