The Boom Logistics Limited (ASX: BOL) share price is soaring higher today. This comes after the company announced it has been awarded a new contract.

During late-afternoon trade, the lifting solutions and crane provider's shares are selling for 15 cents a pop, up 7.1%.

What's in the deal?

According to the release, Boom advised it has won a new contract at the BHP Group Ltd (ASX: BHP) Olympic Dam. The award will support a major smelter shutdown project that is scheduled to commence in August 2021.

The project will complement Boom's current maintenance work that has been ongoing since 2012 at the BHP Olympic Dam.

Under the agreement, Boom will supply additional cranes and speciality rigging and engineering services for the shutdown. Equipment is expected to be mobilised from June, with the project running from August to November this year.

The company is forecasting the project to generate revenue of around $15 million which will fall in the FY22 calendar.

Boom CEO and managing director, Tony Spassopoulos commented:

Boom Logistics continues to win new mining maintenance work. We are very proud of our longstanding relationship providing services to BHP Olympic Dam, and pleased to support another major smelter shutdown program.

During the SCM21 shutdown, Boom Logistics will have 40 cranes and approximately 150 crew on site at Olympic Dam. We have an experienced team on site with the priority on safety first and project delivery. Shutdowns are an essential part of mining maintenance, contributing to safe and effective production and productivity improvement.

Boom highlighted that it has firm shutdown bookings planned in Queensland and Western Australia. Furthermore, the GE Bango wind farm construction and the Snowy 2.0 infrastructure project is projected to run into Q1 FY22.

Boom share price summary

Over the past 12 months, the Boom share price has gained above 60%, however, year-to-date performance has sagged 16%. The company's shares reached a 52-week high of 19 cents in December 2020, before treading lower.

Based on the current share price, Boom commands a market capitalisation of roughly $64 million, with 427.7 million shares outstanding.

The post Here's why the Boom Logistics (ASX:BOL) share price is up 7% today appeared first on The Motley Fool Australia.

The Boom Logistics Limited (ASX: BOL) share price is surging following a new contract win with GE Renewables. At the time of writing, the lifting solutions and crane provider's shares are up 6.6% to 16 cents.

Let's take a closer look at what the company announced.

What's driving the Boom share price higher?

The Boom share price is climbing as investors appear pleased with the latest update.

According to its release, Boom advised that it has secured work on the Bango wind farm in the Southern Tablelands region of New South Wales.

The project will see Boom provide a number of lifting services for the construction of the wind farm. The company will deploy a fleet of 12 cranes, which will include three 750 tonne capacity cranes. In addition, a team of 40 people comprising of specialist technicians and project management will manage the project. It's expected that once complete, up to 38 wind towers will be installed, generating roughly 240 MW. This is enough energy to power about 100,000 residential houses.

While no financial details were given in the release, Boom stated that the project is due to commence this month.

What did the head of management say?

Boom CEO and managing director Tony Spassopoulos commented:

We have an experienced team mobilising to site, with the priority on safety first, focused on customer service and project delivery.

We continue to expand our wind farm projects business and demonstrate our capability as the leading Australian lifting solutions provider in this market segment.

Addressable market opportunity

The company noted that the energy sector remains an attractive opportunity as Australia transitions over to cleaner energy. More than 1,800 towers are earmarked for installation in the next 3 years, representing a robust market for Boom.

Complementing the potential growth, the company also mentioned that around 3,000 existing wind turbines across Australia require ongoing maintenance activity. Boom has logged increased bookings from its support business, which has further added to its revenue streams.

The Boom share price has jumped 34% in the past 12 months but is down 13% year-to-date.

The post Why the Boom (ASX:BOL) share price is surging 6% today appeared first on The Motley Fool Australia.

Although the market has gone sideways over the last month or so, a number of shares have managed to continue climbing higher unabatedly.

Three shares which have just touched on new highs are listed below, is it too late to invest?

The Boom Logistics Limited (ASX: BOL) share price reached a multi-year high of 27 cents this morning. Investors have been fighting to get hold of the shares of the provider of crane logistics and lifting solutions since its annual general meeting last month. At the meeting management revealed that Boom has had a great start to the year thanks to its largest windfarm construction project at Mt Gellibrand. EBITDA for the first four months of FY 2018 has reached $8 million, up significantly from $4.5 million in the prior corresponding period. I think Boom could be worth a closer look despite this gain.

The Dicker Data Ltd (ASX: DDR) share price reached an all-time high of $3.05 today. As well as being popular with income investors due to the generous dividend it pays in quarterly instalments, investors appear to believe that the wholesale distributor of computer hardware and software is in a great position to grow at an above-average rate thanks to its market-leading position and the rapid growth of the cloud computing market. While it is no longer a bargain buy, I think Dicker Data is still good value.

The Lovisa Holdings Ltd (ASX: LOV) share price climbed to an all-time high of $6.90 this morning. I can't say I'm surprised by this rise due to the successful international expansion of the fast-fashion jewellery retailer. Lovisa recently opened up a store in the United States. If this tests well then I believe it could be the first of hundreds in the lucrative market. This could arguably make Lovisa a great buy and hold investment option.

The post Is it too late to buy these high-flying ASX shares? appeared first on The Motley Fool Australia.

One of the biggest movers on the market on Thursday was the Boom Logistics Limited (ASX: BOL) share price.

The shares of the provider of crane logistics and lifting solutions finished the day a massive 20% higher at 21 cents.

Why did its shares climb higher?

At its annual general meeting today Boom Logistics provided a trading update which revealed that it has had a very strong start to FY 2018.

According to the release, as of the end of October, revenue had reached $62 million compared to $50 million for the prior corresponding period.

EBITDA for the first four months of FY 2018 had reached $8 million, up significantly from the $4.5 million generated in the entire first-half of FY 2017.

This strong performance has been driven largely by the undertaking of its largest windfarm construction project at Mt Gellibrand.

Pleasingly, this growth could continue over the next couple of years thanks to a number of wind farm crane revenue opportunities for FY 2019 and FY 2020 worth up to $300 million in value.

The post Why Boom Logistics Limited shares rocketed 20% higher appeared first on The Motley Fool Australia.

Earlier today, crane provider Boom Logistics Limited (ASX: BOL) announced a statutory loss after tax of $36.9 million in the year to 30 June 2015. This is an improvement on last year's loss of $79.5 million.

Both this and last year's result were affected by various impairments and other "one-off" charges. Excluding these, the current year loss would have been $6.3 million.

The half on half earnings trend excluding the impact of "one-offs" isn't a pretty sight for shareholders either. The first half of the year delivered revenue of $115.6 million and earnings before interest and tax of $1.5 million. Things got worse in the second half and revenue was $91.0 million and earnings before interest and tax were -$7.8 million.

The reason provided by management for the deterioration during the year is a combination of weaker commodity prices, project delays and the completion of a major wind farm project in the first half. In response, the company cut the workforce by 147, or 19% during the period which is expected to deliver $11.6 million in operational savings and $4.1 million in overhead savings each year.

Like many companies exposed to the mining sector, Boom Logistics has seen demand for its products dry up in recent years. Consequently the company is focused on selling surplus assets and deleveraging its balance sheet.

On this score, things have gone quite well. Net debt has fallen to $71 million from $89.5 million last year and during the year the company sold $20.3 million of equipment that is no longer needed.

Net tangible assets are 41 cents per share compared to a share price of just 11.5 cents which suggests there is value in the stock. This assumes that Boom can convert the assets on its balance sheet into cash and not lose too much money in the meantime.

Given the heavy write downs to assets over the last couple of years and that asset sales last year delivered a profit of $3.2 million, it should be possible for Boom to realise most of the $253.3 million of plant and equipment stated on the balance sheet.

Also despite the heavy losses, the company is actually cash flow positive because it does not need to spend much on new plant and equipment given the shortage of work. Therefore, whilst the company recognised a non-cash depreciation charge of $24.2 million related to existing fixed assets, it spent just $8.3 million on new equipment last year.

Also, given the stock trades at just 28% of its net tangible asset value there is plenty of room for further write downs and worsening conditions before shareholders need to worry. Boom is not a good business, but as an investment in it offers a large margin of safety.

The post Boom Logistics Limited reports losses but is it a buy? appeared first on The Motley Fool Australia.

The S&P/ASX 300 (Indexasx: XKO) (ASX: XKO) has ended the day virtually flat at 5,606.6, despite strong leads from Wall Street overnight. The NASDAQ index rocketed up 1.3% while the S&P 500 gained 0.8% and the Dow Jones gained 0.4%.

Have investors given up after all the excitement surrounding Greece in the past few weeks that they've decided to have a breather? Perhaps it's the more than 3% gain by the market this week that has allowed investors and traders alike to take Friday off.

Whatever the case, these 5 stocks aren't feeling the love today…

Novogen Limited (ASX: NRT) has dropped 11.9% to 26 cents as the biotech company announced that its chemotherapy candidate drug Anisina had been granted Orphan Drug Designation for neuroblastoma. Orphan Drug designation is granted to a product or drug when it will be used to treat a rare disease or condition. Novogen has already received orphan drug designation approval for its Cantrixil drug in April this year, and its TRXE-009 drug was proven to kill brain cancer cells in May. But it seems investors haven't taken kindly to the news, with many years of trials still ahead for Anisina.

Metro Performance Glass Ltd (ASX: MPP) is down 5.4% to $1.41. The New Zealand-based company produces a wide range of customised glass products used in residential and non-residential construction, such as windows, doors, showers, mirrors and splashbacks. If you're a shareholder, no need to worry about today's fall – the company went ex-dividend today – which usually means shares will fall (as buyers are no longer entitled to receive the dividend).

Hills Limited (ASX: HIL) has lost 5.2% to 54.5 cents and the company has now lost more than half its value since the beginning of the year. New CEO Grant Logan has only been in the job since the end of May, so he hasn't had much chance to turn around the fortunes of the company, although he was Chief operating officer (COO) prior to that, although only since February 2015. Hills is expecting a rough second half of the 2015 financial year, forecasting full-year underlying net profit of between$11 and $14 million. With $9 million coming in the first half, that doesn't leave much in the second-half. Hills is materially affected (negatively) by the falling Australian dollar.

Boom Logistics Ltd (ASX: BOL) has fallen 4.2% to 11.5 cents. Boom provides crane logistics and lifting solutions but is struggling with contracts in the mining and resources sector. Miners and contractors are all pushing suppliers and sub-contractors for better rates to cut costs. Not only that, but Boom has a bucketload of debt, and recently announced that the second half of the 2015 financial year would be worse than the first as conditions continue to deteriorate in its sectors. Despite that, net tangible assets per share are roughly four times the current share price at ~45 cents.

Mineral Resources Limited (ASX: MIN) is down 4.5% to $5.94. Part miner, part mining services contractor, Mineral Resources owns a 30% stake in the Mt Marion lithium concentrate operation and today announced that China's second-largest lithium producer Jiangxi Ganfeng Co. Ltd would be taking an initial stake of 25% in the project. Partner Neometals Ltd (ASX: NMT) will see its stake drop to 45% from 70% and will receive US$19.5 million – hence Neometals' share price rising 8.7% today. Were investors disappointed Mineral Resources hasn't sold down its stake too?

The post 5 stocks sinking on the ASX today appeared first on The Motley Fool Australia.

Mining equipment rental business Emeco Holdings Limited (ASX: EHL) has finally given shareholders something to cheer about with shares in the embattled company jumping to a two-month high this morning.

Emeco announced it would buy one of Australia's largest road haulage truck and trailer rental businesses in a deal that would add about $19 million to Emeco's earnings before interest, tax, depreciation and amortisation (EBITDA) on a full year basis.

That's a substantial boost to earnings given that Emeco's first half operating EBITDA came in at $16.2 million.

The market liked the news with the stock surging 20.8%, or 2.5 cents, to 14.5 cents. But the expected lift in profit isn't the only reason to get investors excited.

The deal to buy Rentco appears to represent a viable way for Emeco to diversify away from the mining industry. Demand for equipment has fallen as miners have cut back on capital spending in the wake of the commodities slump.

Rentco owns around 1,800 trucks, trailers, and ancillary equipment around Australia and is seen as a market leader with an average equipment utilisation rate of 78% over the past three-and-a-half years.

Demand for road freight tends to track gross domestic product (GDP) and not investment cycles, which should lend greater stability to Emeco's business.

The deal also appears to be priced relatively attractively. Emeco will pay $53 million for the business with a potential earn-out of up to $23 million if certain EBITDA targets are achieved. This would put the deal on a 4.7 times enterprise-value to EBITDA multiple.

The acquisition will be funded from Emeco's cash reserves and from profits generated by Rentco.

The transaction will put the focus on crane hire company Boom Logistics Limited (ASX: BOL) as the company is also being heavily weighed down by the mining sector.

I am expecting to see analysts upgrade their earnings projections for Emeco on the back of this deal and I suspect Emeco could enjoy a re-rating after the stock slumped over 40% in the past 12 months.

Nonetheless, Emeco remains suited only for those with a strong stomach for risk as I expect the stock to remain volatile.

The post Here's why Emeco Holdings Limited jumped after buying itself a new lease of life appeared first on The Motley Fool Australia.