Capital Share Discussion Threads

[bones30] 09/10/2012 21:14

Good to see you here Robbie. Adds to my conviction that at levels like this, these are cheap based on fundamentals.

[bones30] 09/10/2012 21:13

I'm wondering about the identity of today's 40k seller and if they are a "distressed seller" or not as I dont think it makes sense to be offloading at these levels. The major holders appear to be directors if I've got my facts correct?

[naked trader] 09/10/2012 20:55

Have been watching these for a little while and it seemed to make sense to dip my toe in the water today as price fell well out of range for no apparent reason. Hoping it was a tree shake and they reverse pretty quick! Has moved far less on much greater volume in the past.

[valhamos] 09/10/2012 19:44

Increased my holding here by 50% today. I may have got the timing wrong but these prices were getting crazy - hard not to resist.

[masurenguy] 09/10/2012 16:45

The price here seems to have been driven down primarily by sentiment and, as it appears to be cheap on fundamentals, I took an initial modest stake here @46.5p today.

[bones30] 09/10/2012 15:10

40k lumps... a pretty poor auction.
Was the 40k @48p a delayed sell from earlier?

Am I right in saying the major holders are all people rather than institutions?

[david_99] 09/10/2012 14:32

I wouldn't be surprised to see a sharp 50% rise from here back to ~ 70+p on the next IMS (next mth) to take us to a more realistic level imo.

[nilip] 09/10/2012 14:19

Just looked at the recent interims.



Financial Highlights

-- Record half year revenue of $79.1m, up 33% (H1 2011 $59.5m).

-- EBITDA of $21.0m (H1 2011 $16.3m), EBIT of $13.4m (H1 2011 $11.2m) and NPAT of $9.4m (H1 2011 $8.6m), all substantially improved over H1 2011 and H2 2011.

-- Increased ARPOR over the period with H1 2012 ARPOR of $197,000 ($154,000 H1 2011), up 28% on a weighted average fleet of 87 rigs (76 rigs H1 2011). Utilisation of 75% (81% H1 2011) due to higher rig mobilisation.

-- Gained momentum in Q2 2012 with ARPOR of $209,000 (Q1 2012 $186,000) and utilisation of 75% (Q1 2012 74%) on a weighted average fleet of 88 rigs (Q1 2012 85 rigs).

-- Increasing ARPOR contributed to record half year NPAT of $9.4m, up 9% on H1 2011.

-- Improved gross profit, EBITDA and EBIT margins on H2 2011, although NPAT margins lower given a higher effective tax rate.

-- Diluted EPS growth of 9% compared to H1 2011.

-- Strong and resilient balance sheet with increased investment in capital expenditure and working capital facilitated by refinanced term and revolving loan facilities.




The 2nd half is likely to deliver an even better performance than above.

[tilusha] 09/10/2012 13:19

Agree, too cheap for a main mkt listing.

CAPD is continuously winning new contracts and has existing contracts with the likes of BHP Billiton and Allied Gold.

[bones30] 09/10/2012 12:54

Also re: South Africa.

Their website says:



Capital Drilling started operations as a company in Tanzania in 2004 with 2 rigs operating in the Lake Victoria goldfield region. The business expanded rapidly on the African continent and now has established operations and businesses in:

Egypt
Ethiopia
Ghana
Mauritania
Mozambique
South Africa
Tanzania
Zambia

[jolomo] 09/10/2012 12:54

I agree Boart's recent comments highlight pretty poor mining outlook but Capital servicing established miners, largely in gold sector so feel market taking a too harsh view here.

Company could well miss expectations, on back on sector weakness, but at this price looks like more than factored in.

[bones30] 09/10/2012 12:49

Look at the image on the front page at the bottom in the middle. Has Jo-burg on it. I just assumed...!!!

Some interesting comments on CNBC about iron ore pricing. Q4 may be an inflexion point.


I imagine if base metal prices find a floor this will have a good read across to here, for example.

So why the dramatic drop today? (I don't think you can answer this with "macro" explanation).

[chrisb1103] 09/10/2012 12:47

ukinvestor220 spot on. Sector sentiment in doomsday mode. Boart Longyear's issues and outlook statements will also have an effect here imo

[trytotakeiteasy] 09/10/2012 12:44

I can't see any South Africa exposure for the group... it could exist but I can't find it.. they are well diversified unlike Shaft Sinkers.. actually slide 24 shows zero South Africa exposure



I don't think there is too much read across from Borat Longyear as Capital is exposed to copper and gold with the latter very robust and the former holding up well.......

[bones30] 09/10/2012 12:33

ukinvestor220 - that's an interesting summary.

You don't think its more about SA politics etc?

[ukinvestor220] 09/10/2012 12:31

Its all about the IMF forecasts for world growth, and how they have reduced for this year. Well, in case anyone hadnt noticed, we are already in October!! But mining stocks have been hit and pundits are producing doomsday reports about how investment in mining is being cut and there is little forward visibility. No more mining ever.

But what IMF also do say is that we may have passed the worst of the downturn. Conclusions. Draw.

[bones30] 09/10/2012 12:24

Quiet here. Forced seller?

[chrisb1103] 09/10/2012 12:08

Jolomo - you got to wonder yeah, really disappoining valuation for a main market listed growth company. IMS due likely 7 or 8 Nov as previous two years, hope that confirms all is on track. Very confident in the interims end of August and the gold price has risen plenty since then - great news for their major customers.

[jolomo] 09/10/2012 12:02

Got to say with such a large Director holding & considering the share price fall, I'm surprised that they are not taking company private.

[chrisb1103] 09/10/2012 11:58

Yeah surely this is way too cheap - getting silly now tbh. Am tempted to pick up more this has to bounce back from here once the persistent seller is done surely?

I think someone here was asking about directors shareholdings. This is the most recent i could find which is from Aug2011. Significant holdings already which might explain why they've not been buying more

Capital Drilling Shareholders
Shares in issue 134.6 mn Options 2.6 mn Total 137.2 mn
Name % of Shares
Jamie Boyton, ExecChair 21%
Craig Burton, NonExecDir 21%
Brian Rudd, CEO 15%
Jamie Armitage 10%
Other Founders 5%
Institutional Shareholders 29%
Total 100%

edit Rudd is now a non exec director of course since geoff fardell took ceo at the start of the year - not sure if he has a shareholding?

[ukinvestor220] 09/10/2012 11:46

talk about free money - help yourself. Well i dont mind if i do !!

[chrisb1103] 04/10/2012 19:32

Disappointing here today, agree with comments above. Still holding a position but not happy. Found a couple of perspectives below which again point to uncertainty ahead for miners in 2013, as has been discussed before. It's clearly hitting sentiment hard here.

However, i remain a holder as they've said will meet expectations this year and with such a low valuation (PE under 6?) and i believe ultimately good future prospects, good management, strong balance sheet, solid blue chip customers and mostly gold, young rig fleet etc etc hopefully all will come good in the end once the determined seller has done. GLA





Maybe boart longyear will make a bid (-;

[gleach23] 04/10/2012 12:48

agreed...i'm still hopeful of a strong recovery at some point and will continue to watch closely

[trytotakeiteasy] 04/10/2012 12:45

clearly someone is unloading no matter what the price... it happens... and can massively hit small cap stocks.... but I think it is disappointing that they haven't found after the interim results a buyer to pick up the slack...