A few for the watchlist25 March 2012
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.