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.
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)
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.
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.
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!
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.)
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...
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.