Bateman Litwin Share Discussion Threads

[simon gordon] 07/11/2007 09:42

'With regard to Delta-T, as announced in early October, certain of its EPC
contracts entered into prior to the completion of the acquisition were not being executed to the standards required by Bateman Litwin. It is likely that the financial outcome of these contracts will result in a reduction of the Delta T purchase price through the agreed performance adjustment mechanism.'

I have looked at the RNS statements for October and see no mention of the above problems.

Did anyone see anything?

[surfer2] 07/11/2007 09:26

decent? profit up 30% ..(:

[nickcduk] 07/11/2007 08:18

Results were decent enough and in line with expectations. They had been sold down on the Biofuel worries I guess. No nasty surprises and relatively bullish outlook looks like it is enough to move the shares higher.

Im not sure whether forecasts will have to be reduced or not. The earn out figures will compensate for any shortfall on what seems to be a few problem contracts. The analyst meeting later on today will determine where the share price goes from here. After the last set of results the shares rose pretty sharply. Im hoping for something similar this time around.

[simon gordon] 07/11/2007 08:10

So this is why the CEO was fired:

'With regard to Delta-T, as announced in early October, certain of its EPC
contracts entered into prior to the completion of the acquisition were not being executed to the standards required by Bateman Litwin. It is likely that the financial outcome of these contracts will result in a reduction of the Delta T purchase price through the agreed performance adjustment mechanism.'

I wonder if the forecasts will be downgraded?

[surfer2] 06/11/2007 17:26

2nd bounce where one might expect ....a few peeps gambling on good results

[simon gordon] 31/10/2007 15:24

Hi Nick,

The uncertainty for me is how much of that 50% uplift in earnings is due to Delta-T? The CEO replacement has spooked the market and no doubt this will be clarified with the Interims. BNLN have spent a large amount for Delta-T and so participants are bound to be nervous, as BNLN already had such strong organic growth.

Delta-T went from $5m to $200m incredibly quickly. If the US market is a bit soft then contracts could be coming in, in a lumpy way thus slowing earnings growth - even though the long term story is excellent.

It is just a matter of whether it is worth buying BNLN now or waiting for a lower price point.

[nickcduk] 31/10/2007 15:08

BNLN isn't only about Biofuels. Market on the whole seems to be focusing on that alone. Sharp spike in BNLN came about following results/trading statement. Results are due next week and I am hoping that will concentrate minds and lead to another sharp rally. 2008 forecasts are forecasting 50%+ growth in earnings and there is plenty of work in sectors other than Biofuels where BNLN is active. That should be enough to trigger a re-rating.

[surfer2] 31/10/2007 15:08

i dont think its lack of buyers ...i just dont think many people know about this and the likes of lamprell....thats why i didnt buy lamprell at 180p - there was no coverage......
if i told you i was telling my broker to set up pacific ethanol for trading 3 yrs ago before bill gates bought in .....once again didnt buy and it went from 7 to 45 dollars...soemtimes u have to take the plunge ....it will be a while before gtl breaks even for me but it is a 1 horse company...this is picks and shovels stuff like fenner

[simon gordon] 31/10/2007 15:01

Then it must be due to the CEO replacement. As the order inflow is not stimulating buyers.

I remember the Ethanol boom on AIM but gave it a miss.

I watched BFC collapse and it had buyers all the way to suspension.

I hope GTL comes off for you...

[surfer2] 31/10/2007 14:13

"the fall could be related to the Ethanol market in the States hitting a speed bump and the market has de-rated BNLN because of this".

Ive been invested in GTL and watching ethanol for 3 yrs now and the speed bump is fairly old news - the mkt factored it in last yr. still think the orderbook will see them trough to an upturn in the sector . will have a look at CIU cheers

[simon gordon] 31/10/2007 13:32

I have followed BNLN for a while and noticed the recent fall and decided to jump in near the recent low. I thought the fall was due to the CEO being replaced at Delta-T but now I think the fall could be related to the Ethanol market in the States hitting a speed bump and the market has de-rated BNLN because of this.

I am looking CIU as a play on Energy infrastructure. The chart is spectacular. Forward p/e 10x, with upgrades likely. Just got a lot if integration to do in Oz.

[mirshahik] 31/10/2007 13:29

Hi,
I also got in to these some time ago and made some profit. However, kept one position open and closed last week at a loss. Baffled why it keeps dropping. Seems too good to be true.

In my opinion we'll find out the real direction after the results on the 7th. Also I think there is not a huge amount as free float so could see fluctuations...but such a steady drift down??

[surfer2] 31/10/2007 13:21

well best of luck , although the rating isnt demanding at all , its around 13-15 i think ... do you mind me asking wht price you bought originally ? i looked at these at 145p originally. always have an eye out for oil services / related shares having dithered over PFC LAM and SDX -im hoping PSN will float this year ...the UK sector doesnt offer anything else cheaper than this imho at moment
its not a pure play on oil / gas and some dont like that i suppose.

[simon gordon] 31/10/2007 13:01

My concern is that in the near term Delta-T may not deliver and forecasts will be cut and the share de-rated. Just too much uncertainty for me. I agree the future for Ethanol is excellent but right now it is lumpy.

[surfer2] 31/10/2007 12:58

go to GTL thread and see article that 80 billion is planned to be invested in Ethanol over the next 15 yrs. the Ethanol story is far from over . i hold GTL and have been hammered but am holding out for the inevitable cash machine. the Plant is up and running over capacity. so the Delta t aquisition could be very very shrewd - they built plants for all the big players like PEIX

[surfer2] 30/10/2007 13:27

you are right about the ethanol concerns short term but thats for producers...if BNLN are winning contracts to build plants in the current ethanol climate then thats a positive in my book....besides they are operating in several other spheres...

[simon gordon] 30/10/2007 11:05

Hi Surfer,

On CNBC's Squawk yesterday the Guest Host was Sean Corrigan from Diapason Commodities. He mentioned that the ethanol market in the States was under pressure due to these factors:

-Corn prices high.
-Ethanol prices lacklustre.
-Lack of a distribution network/pipeline.

He thought it would be worked out because of the Political imperative - but this did not mean there would not be short/medium term pain.

I wonder what this means for Delta-T as they did experience spectacular growth but it is now possible that the demand has slowed and it could still turn out a Turkey.

I have sold my shares until I get a clearer picture.

Good fortune!

[surfer2] 27/10/2007 20:21

what about the sister co. bateman engineering in the mining sector?
it seems to be lagging this a little - similar chart /story ect

[surfer2] 27/10/2007 20:19

will he let go 9% if it means the company can become a 500 or even 1 billion mkt cap in a few yrs ?

[simon gordon] 27/10/2007 13:20

I looked ar VELO but was put off by the dependence on the small number of clients and the operating structure. I note they have renewed an important contract. I much prefer BNLN.

----

BULL
-Secular growth play.
-Global infrastructure boom.
-Solid balance sheet.
-Established, conservative, total quality company.
-Order book $1.5+ billion.
-Delta-T in a very high growth sector.

BEAR
-Why was Delta-T's CEO replaced.
-Danger a contract goes pear-shaped.
-Delta-T turns out a turkey.
-Controlling shareholder (an Israeli diamond billionaire) owns c.60%.

[surfer2] 26/10/2007 14:45

Velosi is one to watch too although much smaller and newer .

VELO, aim

[simon gordon] 26/10/2007 14:36

'Bateman Litwin (BNLN) remains an obvious play on the long-term energy story. Recently, the stock has risen strongly amid a series of contract wins, and continues to prosper in a buoyant oil, gas, and energy procurement and construction market. High commodity prices have also lifted its share price. The proceeds of a recent fundraising are being used to acquire a bioethanol fuel-technology provider. This deal will transform Bateman into a more complete energy provider, while maintaining its core exposure to the oil and gas industries. The dividend is expected to rise by an estimated 64% by 2009.'

[simon gordon] 25/10/2007 20:03

I have started a new thread with links and charts.