BBR    Last:0.129    +0.001

BBR

According to Annual Report of BBR  for 2005 - Cash & fixed deposits for 2005: Group - 12,320 million. Group gearing was reduced from 1.22 times as at 31 December 2004 to 0.20 as at 31 December 2005 through the sale of its office building.  The Group has a current order book of approximately S$151 million..  Positive impact on stock price if it wins one of or both the IR deep bore piling contracts, right?

 

BBR financially Ok ?? cashflow ?? if need to borrow too much to finance new projects, profits will limited.

 

Based on my limited knowledge, the companies that Mamasan mentioned appear not to have the specialised engineering know-how that BBR has.  A stock may rally as long as there is a fresh lead. Remember the recent tender to build the IR. Capitaland and Kepland rallied when it was announced that they had teamed up with their respective overseas partner to bid for the right to build the IR, long before the close of the tender, athough any likely gain from the IR would have been realised at the earliest only in 2009.   Let us see what happens to the  BBR stock after the building tender is announced (should be very soon).. 

 

L&M, Presscrete, Econ, NeoCorp...

 

multi-con, related to BBR ?

 

rally can happen, with or without reasons...

marina job is not easy.. . if no good margin, better not to take...trouble with construction job is account is "finalised" after 3-4 years... profit may turn into losses...

 

Sengkang LRT piling was not a  specialised job. However, the Singapore Government entrusted it with the project  though its price might not have been the lowest because of its track record and expertise.  As BBR had to compete with other firms, its profit margin was much lower.  The deep bore piling on reclaimed land is  specialised.  With a negligible number of competitors in sight, (as it is impossible for a foreign firm to set up a company, ship in the equipment
or employ the experts for the job in time for the project) this tender will be different in terms of profit margin.  If it does not show any potential (which will be revealed within the next few months), why was there the recent rally?   

 

BBR got Sengkang LRT job previously, end up how ?

 

The IR work will start this year. As the soil condition requires deep bore  structural foundation, a Channel News Asia report highlighted that local specialist engineering firms  will win the two lucrative piling tenders. As it is unlikely  that overseas firms can bring in the specialised equipment for at the most two such projects in time, besides it being not cost effective to do so, existng firms in Singapore with the expertise will benefit. Any positive  impact on the earnings of listed firms with the expertise, e.g. BBR?

 

speculation, gambling.. almost sama sama ?

 

I don't believe in resistance or support levels. Also consistent low volume don't look good to me. I like stocks which are very liquid.

 

Thanks for the advice.  Speculating means "buying when the price and volume keep moving up" isn't it?  By the time the analyst is proved right, the early birds would have caught their worm. High volume at low price followed over many days with a subsequent low volume without any  drop in price is a good sign of recovery or support, isn't it.  What is your take on that?

 

Its a very very cheap Penny stock... suggest avoiding it for now.

The analyst may be right but market conditions now too adverse for speculating in penny stocks. 

 

Not long ago, a stock broking house expert suggested on Channel News Asia Business Tonight that prospects of  growth and  profit for BBR are good since it should win, one, if not both,  the deep pile boring work required for each IR project. He may  be right, but is not the only person who has that opinion. BBR share has been holding at between 3.5 to 4 cents each recently.  Moreover, it has been a laggard for the past seven years, compared to a few other shares that have dropped in prices oiwng to short selling or overbuying. .