What does Boom do?

Provides cranes, project management and engineering services to customers in a diverse set of industries including:

• Mining 
• Utilities 
• Infastructure 
• Telecommunications 

Additionally their assets are avaliable for hire.

Moat:

Other than being one of the largest (or the largest) provider of cranes in Australia I don't see anything that stands out as a 'Moat' other than the scale that they already have 

Why am I buying:

1. Leveraged to infastructure and mining spend 
2. Trading around Net Tangible Assets (even after stripping out 'Right of use assets'), roughly 21 cps in assets.
3. Strong underlying cashflows ($14.4M for HYE December 2020)
   1. 3.95x Enterprise Value / Free Cash Flow 
4. They are almost consitantly profitable from the last few halves on an EBIT basis. One of the main drivers that swings the results to ongoing losses is depreciation on Cranes and Equipment (Which I argue are an actual cost to the business when a sufficent Return on Assets is not present) 

When I would Sell: 

1. Consistent declines in revenue 
2. Blow out in shares on issue 
3. Not winning new projects
4. When share price rises a bit above NTA (progressive sell down and move to other opportunities)

Directors are buying and I believe this is a good time to buy Boom as it’s well positioned to capitalise on sectors which have strong macro-environment tailwinds. They returned to profitability in the last 6 months and improved cashflows enabling a dividend of 1 cent to be paid, representing a 6.7% yield.

BOL half year results : Fair result although some effect from delayed projects. Still losses after depreciation but good $11m Free cash flow generation and debt reduction.

Positive outlook for H2 underlined by decision to pay a small dividend. 

Share Price .13c still at a large discount to NTA of .29c.

Boom has released their full year results missing previous EBITDA guidance due to the strike now costing $4.5m, also sale of asset losses and impairments for other assets.

Did generate fair operating cash flow & around $9m free cash flow, used fo fund the share buy-back which is still ongoing.

Management has published targets for FY20 stating "outlook is positive to achieving sustainable growth" and also restablishing two previously closed depots.

Still feel this turnaround will turn.

http://www.boomlogistics.com.au/wp-content/uploads/2019/01/BOL-FY19-Investor-Presentation-FINAL-21-8-19.pdf