VBC 0.00% 14.5¢ verbrec limited

what ms firms will show 25% growth in interim?

  1. DSD
    15,757 Posts.
    Like most investors i seek companies that look cheap based on previous FY, pay divs AND have potential to grow earnings by at least 20% in their interim results which are due anytime over next 3 weeks. In particular i looked for firms with what i perceived to be a good macro. The biggest game in town is the 100+BILLION being spent over next 3 years on 5 gas plants across NW shelf and Gladstone. final figure could be close to 150B!! That's big bikkies by any standard.

    My first choice was LCM. I missed the dip to 1.03 and got in at 1.175. Am kicking myself for being to greedy. I reckon LCM EPS will rise by 20-25% for half-yr just ended.

    My 2nd was FGE. I kept looking at FGE as it got cheaper and cheaper. On paper it looked fabulous but lack of info from management and the constant sell down made me hold back. Then the update came in early december the SP reacted sharply. I'm tipping 42% rise in EPS in the half-year and decent jump in divs, despite history of not paying much in dividends. Well done to holders such as 'Veecat' who rode this sucker very well.

    My biggest long position (see numerous posts) was SWK. I was very confident buying at 25c and reckon they'll show EPS growth of about 16%.... again with more to follow.

    However, I lightened my holding in SWK considerably at 38.5c and sold all my LCM at 1.41, but mainly coz i'm being stretched elsewhere.

    I looked across many many MS (mining service) companies. MLD is rock solid but i want to pay about 2.10. Hence, I'm unlikely to end-up with any.

    Another MS stk that i liked and bought was XRF. this micro-cap continues to grow in strength. I've lightened my holding but am sure it will post a 25% EPS gain in 2 weeks time.

    LYL, and several others have merit but feel the risk/reward is not there. I trded IMD and DCG quite succesfully (which is unusual for me) and still have about 35% of my stake in the former. Both (imo) will post a decrease in eps this month but have merit.

    Eventually i came up with SXE. It too has exc exposure to LNG and changes at company are producing the goods. I'm expecting a 50% jump in eps and feel the mkt has overlooked this firm despite its 200m mkt cap. i entered at $1.225 late january, and i'd liked to have bought more, but be warned it's thinly traded and difficult to buy with top20 holding 90%. i'll post more detail on SXE thread over the next few days.

    These are my tips for the interim. Perhaps other readers have a Mining Service stk they feel will grow by 25%?
 
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