An opportunity exists in crane hire company Boom Logistics (BOL), Intersuisse analysts believe, for the investor who doesn’t dither. Boom boomed up to May last year, driven by its industrial and resource sector-led hire business expansion, but it faltered along with the resources sector thereafter and has failed to recover.
The story about Boom is not the FY13 result, argue analysts at CIMB. We all know the underlying story for the mining services providers all too well and it’s not different for this company. But the share price is so low and even with significant cuts to estimates, there seems to be little chance Boom will breach its debt covenants, state the analysts.