RE:BDI target raised...One of the key points in his research note is the reference to the LodgeLink platform holding "significant opitionality". By optionality I assume he is referring to its potential as a significant revenue generator, but I would think the BDI executives would also be considering a future sale/spinoff that could net huge money for BDI. LodgeLink is really going to start getting more "eyes" on it, bringing a lot more attention to BDIs tremendous upside. If you don't think or don't yet know of LodgeLink's potential, just go research how travel booking sites make their revenue. Also, keep in mind that LodgeLink not only performs the basic travel bookings of a typical travel site, it also provides account services to companies that pay for the service on top of that. It's a real game changer and somehow BDI is "first to market" with this solution for workforce travel and account management.
Does anyone have a link to John Gibson's full research note for this upgrade today?
Black Diamond Group upgraded to Outperform from Market Perform at BMO Capital BMO Capital analyst John Gibson upgraded Black Diamond Group to Outperform from Market Perform with a price target of C$3.50, up from C$2.25. Black Diamond has spent the past several years shifting its business outside of the oil and gas sector, and now offers "torque" to improving energy activity levels, while its LodgeLink platform holds "significant optionality," Gibson tells investors in a research note.
https://thefly.com/landingPageNews.php?id=3224005&headline=BDIMF-Black-Diamond-Group-upgraded-to-Outperform-from-Market-Perform-at-BMO-Capital
PS - Ariesleaf, you shouldn't have sold. Your comments about BDI needing herd immunity being so important to BDI is almost irrelevant. Aside from a lot of the big tech companies, almost all companies will benefit from "herd immunity". If you can see to the end of 2021 and into 2022, BDI is poised for liftoff. I personally see 3 main factors and catalysts to BDIs growth:
1) Diversification - we already know how well they've diversified into sectors where they will not experience the cyclical highs and lows (as with oil and gas). We also know that the recent Vanguard acquisition is bringing 7 cents positive EPS to the balance sheet, not to mention significant predicatble future revenues from the eduaction sector. They've grown their MSS segemnt (not reliant on oil and gas) including the BOXX modular and Britco acquistions. In my region in Ontario, I am seeing a lot of the BOXX modular structures over the past 2 years where I had never seen them in this neck of the woods before. They've also diversified into the disaster recovery sector.
2) LodgeLink - already explained, but not yet fully known or grasped by the wider market. Traction has been gaining with recent news announcements and now with analysts making distinct mention of its potential.
3) Space Requirments - during and after Covid, workforce housing (lodging and camps) along with MSS and the education sector, will require more space per worker or per person for distancing considerations. We've already heard BDI report on this, and I think it will be a continued trend.