A few for the watchlist

25 March 2012 tagged: asx-azg asx-dsb asx-eax asx-snl | 0 comments

After a busy interim reporting season, I've decided to put down a few companies that have caught my attention during this period. A few of these companies have had comprehensive articles written, so I'm not going to be writing about things that have already been well covered. Below is a quick summary, with more comprehensive followups likely in the future.

Delta SBD (ASX:DSB)

• Mining services company that specialises in underground coal mines in NSW and QLD.
• Growing and with a substantial amount of orders locked in for the next few years.
• 29% Return on NTA, 12.5% ROE, and on track to make NPAT $6.3m or 13.24cps for FY12.
• Lots have been written of late from Ord Minnett, Leon of ASXValue, The Boat Fund and Roger Montgomery (Eureka Report subscription).
• Last traded at $0.91 with a market cap of $43m.

Supply Network (ASX:SNL)

• Ultra boring company that's into supplying truck and bus parts.
• Last few years the company has been growing organically with new branches and hitting growth targets ahead of schedule.
• Strong management, minimal debt, strong track record, 24% ROE, P/E around 8.
• Last traded at $0.83 with a market cap of $28m.

Energy Action Ltd (ASX:EAX)

• Energy auction procurement and energy management services.
• Growing company within a growing industry, especially since the advent of the carbon tax.
• 41% ROE, minimal debts, growing and with a P/E of under 12.
• Good writeup of the company over at The Boat Fund.
• Last traded at $1.95 with a market cap of $49m.

Allmine Group (ASX:AZG)

• Mining services company with some serious connections with some large Chinese engineering firms.
• Trading at a P/E of 6.3 when taking into account the management incentives over the next few years (using a conservative 450m shares on issue).
• Some massive contacts in the pipeline and has tremendous upside - should they deliver on them. But execution risk is high.
• Harley Grosser has written the most comprehensive take of the situation on both Roger Montgomery's Blog and The Boat Fund
• Last traded at $0.215 with a market cap of $59m

Disclosure: At the time of publishing, I own shares in all four companies mentioned.

Reminder: I'm not a licensed financial adviser and nothing on this site constitutes financial advice.