BBR    Last:0.129    +0.001

7 bull years for Construction Stocks

Sorry, thought this was a thread to discuss the construction industry in general.

Didn't realise it was BBR.

 

SMB United is a contruction stock that has been somewhat neglected. Although it is not involved in the activities that are commonly associated with construction (cranes, piling, steel works, contractors etc), their business  of customised electrical switchgears is required in every commercial, industrial and residential (condos, HBD flats). Their revenue stream probably come in towards the tail end of a project.

This is a counter forumers may want to look at.

Vested and caveat emptor.

 

The party just got started, more to come......

 

Jackjames, fully agree that construction companies are making TONS of money this time round.  However, they lack TRANSPARENCY.  Perhaps SIAS should work on them to improve their reporting or some Whistle Blowing is needed. 

 

constantly BBR is getting new projects, great !

 

BBR Holdings (S) Ltd (the ?Company?) wishes to announce that Singapore Piling & Civil Engineering Private Limited, a wholly-owned subsidiary of the Company, has been awarded a contract by Ascendas (Tuas) Pte Ltd to build an iconic office tower block at the International Business Park in Jurong East. The contract sum is approximately S$95.3 million and contract duration is approximately 19 months, expected to commence next month and to be completed by August 2009.

 

Main reason for it to be seen as no interest is that trading have to be done thru the broker.

BBR ? secures S$6 million LTA contract to upgrade vehicular bridges

? BBR Holdings through its wholly-owned subsidiary Singapore Piling & Civil Engineering Private Limited has secured a S$6 million contract from Land Transport Authority (?LTA?).

?

source: WESTCOMB SECURITIES PTE LTD : Breakfast News The contract is to upgrade its vehicular bridges at seven locations in Singapore as part of LTA?s ongoing efforts to enhance the load-carrying capacity of its bridges. The work is expected to start on 28 January and to complete by end March 2009.

 

This counter invite no interest since after x'mas 07. People already forgotten on this penny stock leow, though its cheap and good. Any heart-striking news on this counter form the seniors or those young at heart? Cheers.

 

I do see the construction sector moving up soon as resting on support. So it is not just BBR but the rest of the counters such as CSC, CES, Lian Beng. I am vested also in Tat Hong as I see a breakout very soon. If it does not breakout tomorrow or Monday, it should do so on 2nd Jan. As for BBR, let's hope that this laggard does not disappoint and also the 2nd half result is hopefully better than 1st half.

 

the time for BBR is coming soon, keep waiting for it

 

HOLD TO 30CENTS! I am just waiting for the eventual release of the Nassim Hill completion of sale.

 

I think BBR is more on govt projects thus profit margin is lower. Just met  my friends from construction sector and confirmed the construction sector is very hot for next 2- 3 years. They need more workers and asked me to help out. Construction workers are paid higher now. Overtime pay is very common.
 

 

People ask me why am I so bullish about BBR when it is such a laggard? Especially when after big buy up yesterday, today people start selling. Well, they can't see the diamond from the rough.

BBR reminds me of Tat Hong which I traded from 60cents till now. Also reminds me of Yongnam which I traded from 15cents and got out at 50cents. I like both Tat Hong and Yongnam because there is visibility to the demand of their products. The industry needs lots of cranes and steel.

This is call value investing, taking aside the technical analysis which I am 80% doing most of the time. BBR is a very specialisied engineering coy and is able to capitalise on the difficult projects handed out especially tunnelling projects. Don't forget they got the Alexandra piling project and probably may have tendered for the structure building as well. How about MRT lines projects? In addition, the margins from the 2 property development will be adding strongly to the bottom line. Check out SIAS report in www.bbr.com.sg. I believe this is the stock that will go beyond 30cents and give me the exponential return just like what Tat Hong did (still doing) and yongnam (which I got totally out now and reinvested in Lian Beng). I may not be right but I am taking a calculated bet this will turn out well.

 

Next 2 years will be good construction counters play barring unforeseen circumstances. Vital point is enough workers to complete the projects fast. Time means money. Here, good MOM's policy on foreign workers should help a lot.

 

ha ha... welcome back BBR to 0.11 ...

Soon, it's contruction and property play, next !

 

DJ MARKET TALK: BBR +31.3%; Deserves Higher Valuation - Analyst 0238 GMT [Dow Jones] BBR (562.SG) +31.3% at 4-week high of S$0.105 in active trade as investors cheer win of S$189.6 million contract, its biggest this year, to build tunnel in Singapore's business district. SIAS Research analyst Johnny Kwon says investors getting bargain as huge contract warrants higher premium to current share price; "the current price with respect to its orderbook is quite low. Before they clinched this contract, the valuation was already cheap." Adds size of contract reflects industry strength; "it implies that the construction industry in Singapore is still very strong." Project awarded by government agency URA, runs for 40 months starting December. Resistance at 100-day moving average of around S$0.11. (FKH) Contact us in Singapore. 65 64154 150 ; MarketTalk@dowjones.com

 

Globalvoice had a fast run-up previously from 8cts to 21cts.  Recently, it has been dipping instead of moving north in spite of the many projects it has clinched.  Don't be too happy that BBR will definitely run like crazy coz' it had a fast run-up not long ago.(if only making  $$$ is that easy - winning projects - definitely u)  As it is one of the "suspended stocks" of a few broking firms, it has dipped instead of moving north in spite of announcing a few deals recently. Its rise may be limited as the profit margin may be very narrow - maybe, 10% (it's  a govt tender -  profit margin is very narrow, lah!!!) for the whole project till completion in 2010.. 

 

watch out tomorrow

 

It is always a pleasure to share with people who are interested. I made 1 round off BBR already, bought at ave price of 7 cents and sold off at 16 cents. So I am convinced this time, BBR will go up quite strongly. My personal target price is 30cents and maybe even 50cents. Why?

Lian Beng in biz times is expected to hit about $1.20 with profit about $70m in 2009 and BBR is in somewhat the same proportion of biz as Lian Beng and if BBR's profit is as stated in SIAS report is true, then the share price should be $0.50cents at least.

Anyway, the profit margin for the tunneling project (which BBR is a specialist) is expected to range between 10 to 15%. So at a lower estimate of 10%, profit margin should be $18m spread over 3 years. I do expect BBR to charge strongly ahead. Btw, this is purely fundamental analysis, nothing to do with technical trading.

 

 

Thanks ninjaturtle for sharing all this info. Appreciate.

Announcement fyi.

AWARD OF CONTRACT

 

BBR Holdings (S) Ltd (the ?Company?) wishes to announce that Singapore Piling & Civil Engineering Private Limited, a wholly-owned subsidiary of the Company, has been awarded a contract by the Urban Redevelopment Authority for the construction of the proposed common services tunnel (CST) phase 3A at downtown core (Contract No. URA000/CS/0711). The contract sum is S$189,600,000.00 and the contract duration is 40 months, commencing on 7 December 2007 and expected to complete on 6 September 2010.

There is no material impact on the earnings per share or net tangible asset per share of the Company for the current financial year ending 31 December 2007.