Northbridge Industrial S... Share Discussion Threads

[deadly] 13/9/2013 09:11

Excellent results and another acquisition

-- Group revenue up 31% to GBP18.6 million (2012: GBP14.2 million)
-- Gross profit up 25% to GBP9.9 million (2012: GBP8.0 million)
-- Operating profit up 70% to GBP2.8 million (2012: GBP1.7 million)
-- Strong cash generation from operations of GBP5.2 million (2012: GBP4.7 million)
-- Significant reduction in net gearing to 37% (2012: 47%)
-- Significant increase in revenue from Middle East and Asia-Pacific businesses
-- Expansion of transformer rental activity into the Middle East and Asia Pacific regions
-- EPS up 88% to 12.6 pence per share (2012: 6.7 pence)
-- Interim dividend increased by 8% to 2.0 pence (2012: 1.85 pence)

[0rb1t] 13/9/2013 07:41

Looks set for Westhouse estimates of 29eps this year. The management are preparing the business for the next developments in Asia/ME and with extra manufacturing facilities in the UK. But rental contracts in Australia have now finished and the equipment is now standing idle:

"Tasman, our oil tools business based in Perth, Western Australia enjoyed the greatest benefit from overrunning 2012 contracts, with revenue up by 33.7% compared to the same period last year. All the major contracts won last year, which required additional capital expenditure, have now ended successfully and the additional equipment acquired is now available for hire elsewhere.

Our hire fleet now has a substantial presence in the Australian market and we can increase the benefit of "spot hire" with our local availability. Larger offshore contracts are usually linked to the availability of rigs in Australasia and further tenders are expected to become available as the rig count increases."

[smithie6] 11/9/2013 13:11

loadbanks. I dont know the competition. NBI is one of biggest in world apparently...niche market

oil/gas services in Auz. good part of NBI rental income....I think the competition are given in the acquisition doc. of Tasman Oil....if of interest...

since acquisition ....Tasman has grown turnover and profit....Auz Govt. probably keen to grow its oil and gas sector.....so even if globally it ever suffers....Auz govt. is likely to try to help or grow the sector in Auz....clearly better for Auz Govt. if Auz produces its own oil/gas rather than importing it...

[smithie6] 11/9/2013 09:51

Woody
btw
the more I learn about investing....the more I think the best strategy is investing in companies like NBI ....making a profit...and re-investing that profit to keep growing.....that have a known business..and are doing step and repeat...as long as the purchase price is OK....

and ideally with good downside protection (more important nowadays for me than when I first started X years ago....after getting hit by X downsides !)

bit boring perhaps for people looking to make a profit in next 2 weeks....but at NBI and other cos. it has produced good results for PIs...

NBI ..from 1 pound to 4 pounds over maybe 7 years....if one can achieve that via ones investing.....then you make very good money...

[smithie6] 11/9/2013 09:39

Im a fan of tech stocks...(and NBI !)..but one has to be wary of many things...

[woodcutter] 10/9/2013 23:01

high risk and illquid like nbi but have a look at SDI very undervalued and could storm ahead if their key product ProReveal becomes the standard monitoring equipment used in hospitals for surgical equipment cleansing analysis, which i think it wil. i've been buying quite a few recently. i think it was tipped somewhere last week too.

bought on FA not TA.............:-)))

anyway dyor etc

Woody

[smithie6] 10/9/2013 22:04

Thanks for that.

....I try to operate from fundamentals as well....with a bit of gut instinct and some chart basics thrown in....

bt. some NBI around 240p..on gut instinct and fundamentals ..perfect timing...
...but then moved over to MOS...due to fundamentals....and yes, made more on MOS than 240 to 420p that happened on NBI !



been relatively easy the last 6-9 months....loads of stuff has gone up a lot...
not easy now though imo to find a good bargain...

[woodcutter] 10/9/2013 10:42

smithie...............sorry only just getting back up to scratch with the thread.

can't give you summary of candlesticks in short paragraph i'm afraid. however i'll explain a few points from the chart below which might give some insight.



Full engulfing candle (long body) at november last year and Williams %R oversold moved up as did RSI. MACD signal cross over also at this time. Notice how the W%R is ahead of the RSI and the ADX chart so you had ample warning that the share price was going to move north. Price moved up from 220p.

In feb this year another full engulfing candle and a breakout from 240p. EMA's all converged to move up as well. Notice how the W%R and RSI are in the overbought section, normally sell signal but as the share price was begining to trend upwards it was ignored. Both these indicators can give false sell signals during trending as they can stay in the over bought zone for quite a while. MACD also bounced off the zero line a strong signal too. And a major cross over on the ADX chart...black trend line up strongly indicating strong trend in place and big move green over red +DI -DI.

i bought in here several times when the W%R and RSI started to climb from oversold just before the aforementioned pattern described in the previous para..

It traded in a zone then for months bouncing off the 21 day EMA and rising to 380p in may this year. Notice how the peak of the MACD at this time was lower than the previous peak at feb/mar but the share price was higher (a strong sell signal)and the share price was outside the bollinger bands. Also W%R and RSI falling. I didn't catch the top but i top sliced here at about 370p. You can't see it clearly on here but a candlestick pattern termed 3 black crows formed giving a strong sell signal too.

You can't see it clearly on this chart but at end of may early june the candlestick tails bounced off the 340p point and evertime the share price dropped buyers cme back in to hold the share price W%R and MACD bounced up and i tried to get back in here but left it a little late. I was laso greedy and not willing to pay the inflated offer price and it got away from me. Just goes to show sometimes you just have to bite the bullet.

It's running flat at present and not giving any significant signals.

As you can see i use a combination of TA and Candlesticks. I use candlesticks mainly for identifying revesals they are less usefull if the share price is trending imv. Although i always pay heed to them.

Hope that gives you an appetite for it.

Note i'm essentially a fundamental analyst when buying stocks, this TA stuff is only a confirmation tool.

Woody

[smithie6] 03/9/2013 23:03

Woody
...cant interest you to give a summary of key pts. of candles ?...
...in 1 paragraph !

for those of us that might not get round to reading the books !

is one of the key pts.... the shapes and wicks helping to visually easily indicate areas of buying support....or selling resistance levels ...especially around areas of change of a trend ?

[smithie6] 30/8/2013 17:52

Hi Woody
I have a small stack of books as well ! (somewhere !!) .....but more along the lines of popular authors....like , blast from the past, Mike Walters Penny Shares book
...probably time I got into some technical analysis books....so thanks for the info on the ones you have...

but

imo often the key can be down to gut feeling....
eg. when NBI was around 230p last...and a falling trend...

get out and protect cash...or add to your position ?

(I bt. some.....after a little basic number crunching...no book needed)
Im not sure if tech. analysis or candlesticks would have given the answer correctly to that

would it, did it ?

(I often look at the trades....and see if I can see any trends or patterns...)
-----

In 2013....Ive had a blinder so far..2 trading accounts have doubled (but 1 had halved before !! so back to starting point !)....and plodder account is up 25%...and basically using simple fundamentals analysis

..and cheap shares ! (cant claim glory for that !)

....much harder now to find cheap stuff imo....so many things have risen large percentages.....NBI of course, Vislink, Globo, Creston, MOS, etc etc....

One problem with a lot of technical skills....is perhaps the risk of too much knowledge....and perhaps you can be waiting for a chart signal...and bam, a +ve RNS and a small cap. is up 40% and then maybe not so worth getting on board...

[woodcutter] 29/8/2013 19:47

Smithie

I've a whole library of investment books and material including all the classic TA books but the two i use most are:

Profitable candlestick trading by Stephen Bigalow
The art and science of TA by Adam Grimes

They're a bit pricy but imv they're excellent and i have them on my desk top all the time. I do use my reference books like Murphy's TA and Elders trading for a living but these two are well written and really insightful.

My comment on liquidity is based on 15.64m shares in issue and only about 30% free float that's roughly 5m so if you have a reasonable holding as i had then any bad news and you get hit hard. My holding's down to something more sensible now.

Woody

[smithie6] 20/8/2013 11:23

the nbi trades could also be moving shares into an ISA
virtually all the trades looked to be paired...ie. have a balancing trade of same size

[smithie6] 20/8/2013 11:19

OK news from John Wood grp today...who do work in oil and gas sector...
WG.


"Activity levels generally remain healthy
and we believe the Group is well positioned for future growth."

[smithie6] 20/8/2013 10:23

12500 sold in 1st hour
unusual
and mostly sells of 1000 shares
almost looks like 1 seller making repeated trades on-line
surprising they didnt place 1 bigger trade...by phone or on line limit order

any bad news released in rental sector or any logical trigger ??

maybe just cause mkt is down today...and DOW has fallen 500 pts over recent days...

[smithie6] 19/8/2013 19:29

fair value in pnds taken on today...
so perhaps instituts. are filling long term orders...
otherwise I would have expected a small price dip

theyll be thinking more long term....3 to 5 years away...

[smithie6] 19/8/2013 09:11

I see that Kentz which also works in oil services sector....up 23% today...
as declared that received an offer for the co....which it turned down...KENZ

[smithie6] 17/8/2013 20:44

its always nice having to sell in small tranches so as not to disturb the share price too much !!
....as long as the share price has gone up !....not so good if price is falling or fallen and the MM just doesnt want to take any of yours shares off you !

(NBI not so illiquid for many/most PIs..imo..if you have say 5k pnds worth to sell..typical PI amount in 1 share perhaps..theres no problem...)
----

candlesticks....something I should learn about as well...
and charting....Ive got the basics ...and add some intuition/feel...
difficult to drive oneself I think to learn all there is to learn...and then keep that knowledge in your head....when often you do very well with some very basic numbers crunching and see something is way too cheap...
sometimes spotting the opportunity ...and acting...is more important imo than being a chart expert imo...and of course getting the % in different shares in right balance at the right time...for good portfolio gain...

[woodcutter] 17/8/2013 10:59

Sorry smithie just got around to catching up on the thread, yep very humourous.

i follow your synopsis on taking profits and reinvesting but i tend not to be so good at that kind of trading. I pyramid buy assuming the share price moves north then I follow the trend until i have a good feeling it's broken or level off then i'll usually sell in small tranches so as not to disturb the share price too much. Sometimes i'll top slice as i did here. It can be a bit difficult with these illquid stocks and i'm mindful of that.. Most trends go into a trading range at some point, although they are not immune to a sharp fall on a PW.

Occassionally i'll try and trade a stock for a short term return but my experience has been poor. Too much trading costs as you noted and if i get it wrong i don't mess about i get out quickly with strict stop loss.

Funny enough this year i made it my goal to become more knowledgeable on TA and candlestick patterns and that has helped significantly. Thought i'd do a bit of SBetting but not got around to it, can't watch the screen all day:-)

Woody

[lance corporal winstanley ash] 14/8/2013 09:32

Folk now prepared to pay 424

[smithie6] 13/8/2013 14:31

wow
advfn reckons that a seller got 420p for 1000 shares...

that is first time "I think" for 420p or above for a sale...