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Online Share Trading

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WHEEE...

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THRESHOLD
Super Contributor
Now this is a company! Keeping me smiling on a day like today. Bought at 1X cash generated by operations. Huge growth story - dirt cheap-This is how you play the earthworks game! BUT no - rather track those fantastic construction companies.
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13 REPLIES 13
fusion12321
Frequent Contributor
jys darem n ou lee blik wat baie raas.
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Not applicable
Gotta say I don't see the attraction. Huge debt, poor margin and now they have the Platmin debacle to worry about - and we don't know what the fallout of that is going to be (although in the greater scheme of things, probably not going to be big impact)
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THRESHOLD
Super Contributor
FUSION - Hardly "empty" - I've aired my views fully. And made plenty over the years sticking to them. But as always - you offer very well-conceived piece of critique otherwise and so highly educational.
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THRESHOLD
Super Contributor
Of course there is debt - this is effectively an industrial banker. Platmin is accounted for in these results. Forget the ROE metrics you apply - you need to look at multiples of book on her leasing business. She has distribution rights for Terex (now BYCURUS) and distributes both here and in the UK. In many ways a mini BARLOWS. At R5-R6 you were paying 1x cash generated by operations - that is simply cheap.
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THRESHOLD
Super Contributor
Who can forget your classic: " I don't know anybody who owns lots of property that isn't wealthy." My response to that is no doubt what prompted your latest riotous witicism. Say something real for a change, would you!
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Not applicable
OK, but where is the growth? There are no dividends, so I am not comfortable sitting on this long term if it is going to stagnate.
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THRESHOLD
Super Contributor
They just declared 25c based onthe 2nd half. They create R2,5 Billion cash a year with about a R3 Billion market cap. The dividends Will flow. They are the riverside (now RIO) contractor when that gets going. And various projects in the rest of Africa. They are already 85% held by The PIC, OLD MUTUAL and CORONATION (+2 smaller investment houses), so there is proper "interest" here. I saw a figure of 35% of the SA corporate fleet rental market(and that model will also translate to their European operations.)
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CHATTYCHAT
Super Contributor
Yup... dividend number 1 and that excited the market, I think? Also pretty impressive shareholders' list, which in my mind should induce (long term) investor's support. Those directors' guys who sold in May should've waited...
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Rover
New Contributor
That "Director Guy" who sold in May started the core of the business 40 years ago, makes you think why he is getting out doesn't it
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CHATTYCHAT
Super Contributor
A little while back this was exactly my point on SSK founder's sell-off - albeit his excuse was announced as a move to create liquidity for the SSK shares.
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THRESHOLD
Super Contributor
Barnes indicated at the time that he would retain half of his shares (issued to him when MCC mining was acquired,) to participate in any upside. He was "consolidating" and creating cash as he had other personal ventures in property development and aviation which were struggling.
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Airborn
Contributor
Ur on the right track Threshold! They have invested R1.3bn in EXPANSION Capex which implies an embedded R1.3bn per Annum Revenue still to come!!!
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Airborn
Contributor
Yes Mr Barnes wanted to make a small fortune, so he went into Aviation with the Big Fortune that he got paid for MCC :( One sure way of destroying wealth!
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