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Black Diamond Group Ltd T.BDI

Alternate Symbol(s):  BDIMF

Black Diamond Group Limited is a specialty rental and industrial services company. Its segments include Modular Space Solutions (MSS) and Workforce Solutions (WFS). MSS, through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors. WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services, including turnkey operated camps for an array of customers in various sectors. It operates in Canada, the United States and Australia. In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel and logistics services across North America.


TSX:BDI - Post by User

Comment by YoungH1isbackon Jan 07, 2021 2:16pm
148 Views
Post# 32243728

RE:RE:RE:RE:LodeLink is a Game Changer

RE:RE:RE:RE:LodeLink is a Game ChangerI think you're bang on. They're talking about hiring up to 600 employees in the next 3 years, so there's no way they don't already have sollid traction. The uptake is clearly there and only going to grow exponentially. On its own, LodgeLink may outvalue the rest of BDIs core business at some point. It will take some time but it is already past the "project" phase. They have already passed the "survival" stage and are now clearly entering the success/growth stage where the scale up will be quick. 600 employees for LodgeLink is more than all of BDIs employees "pre-LodgeLink", so this thing could be huge. Aside from software developers and marketing, most of these employees would be needed for customer care I would imagine, so they must see a huge uptake in the number of accounts.

I think you're right. At some point larger investors/institutions will take notice of what's happening with LodgeLink and may enter with large stake positions in BDI and we may see a huge spike in SP.

Let's not forget how well BDI has done with their other core businesses on top of that.

It's kind of nuts because BDI's share price got up above $5 in 2017 and between $3-$4 for the majority of 2018. If you go look at their Net Income (loss) and Revenues, BDI is in a FAAAAARRRRRR better position today, so historically speaking it is trading at a discount even though they've done a fantastic job of diversifying the core businesses.

https://stockhouse.com/companies/financials?symbol=t.bdi

The LodgeLink addition and growth just seems like an amazing bonus now and I don't thnk large investors and institutions are aware of LodgeLink and that BDI is no longer handcuffed by just the oil and gas market. They've got assets to provide the disaster recovery, education, banks sectors etc. The oil and gas still plays a large role, but they are really well diversified now, especially after the Vanguard acquisition which is accretive to the tune of 6 cents per share positive EPS. That is a very meaningful impact on their financials. I must say, I was pissed at first that BDI issued $3M in common shares and $8.7M in preferred shares to the founders of Vanguard, but in hindsight it is very smart. Those founders are still with the company and have now have a HUGELY vested interest in seeing Vanguard/BDI do well. Can you imagine you were working for Vanguard/BDI and were issued 100s of Thousands of shares at less than $1.50 a share? You would be super-motivated to ensure the company continues to grow and excel. 

To summarize, I think the recent share price rise has been great, but the company is WAAAYYYYY better off than in 2017/2018 when it's share price was between $3-$5 and I think we may sail past that threshold in the coming year.
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