tend to agree with your thoughts drop back in price looks just like a retrace from the initial run up and picked up a few more myself for the longer term.
As a result of the Huddy's acquisition, FY08 NPAT guidance has been raised to $38-40m, significantly above previous analysts estimates of $18.9m. This should in turn increase EPS to around 5.1cps vs 2.6cps for FY08, and FY09 which incorporates a full 12 months of the acquisition and full dilution should see EPS estimate increase to 6.1cps.
In my view Industrea has now a diversified earnings stream and should be able to provide a relatively stable cash flow generation. Would not be surprised to see further consolidating of mining service companies as well.... so more bolt on acquisitions are a possibility.
The outlook for Industrea remains exceptionally strong driven by demand from China, they also have substantial pipeline of contracts and a greater diversity of earnings from acquisitions and also the growth in the Australian coal Sector with over $6bn in Australian coal mine and coal infrastructure projects that will be completed over the next five years.
all things being equal I would expect higher prices with current valuations around the 75c to 80c mark...
IDL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
