OTCPK:PILBF - Post by User
Post by
aggmanon Dec 14, 2014 1:57pm
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Post# 23228967
2014-2015 the eternal, relentless march forward
2014-2015 the eternal, relentless march forwardFirstly, fellow contributors - I want to say thanks for your posts and thanks for reading and responding to some of mine.
2014 was supposed to be the gung-ho year - but there were various forms of inertia - two static price contracts, channels needed dredging, a Q2 shipping mishap leading to a charge, a non-explained equity raise, a pertmit delay at the Port of Long Beach. But still - I think this was a good year for Polaris. Unit costs indicate Orca is running like a big, well-oiled, slick operation. The reputation of the material keeps growing; and the NoCal and SoCAl markets are deep, with plently of work and pricing momentum in all products. And PLS has a debt free balance sheet, whilst running its ruler over the next stage of growth.
There is a lot of depth going into the next 36-months, we are not talking about then next 12 months looking good - we are seeing a very healthy 3 years of continued volumetric recovery. I did appreciate this recent extract from A CEMEX article (related to California):
In addition, company officials noted that demand for construction aggregate is expected to skyrocket in the next few years, as not enough can be produced in California now just for construction of the state’s high-speed rail line from Los Angeles to San Francisco.
Really - the ball is in PLS's court to get pricing comensurate with the market and really see margin expansion and enduring profits. Around the US - all I read is quarries opening up in response to the healthy demand-side. Whilst, ironically - yet boding well for PLS - Permits/quarries are being revoked in "The Golden State".
Also seeing corporate confidence in doing acquistions: US Concrete have announced two deals (Texas, Staten Island) is the last 2 weeks. More pointedly for Polaris - beyond the entusiastic commentary from CEMEX - is that Candlestick park is comming down, and Lennar has gone public with what it is devleoping on that large site - which is right in Polaris strike zone - from the Redwood City Terminal.
I think 2015 - 2017 are going to be three really good years for this enterprise.
Compliments of the festive season to all, enjoy the break, and best of luck in 2015.