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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 Ventor12on Jan 11, 2021 3:09pm
107 Views
Post# 32268901

RE:RE:BDI target raised...

RE:RE:BDI target raised...The company should be worth atleast $3 based on their current assets. Doesn't seems like the $720 million contract or Lodgelink gets the love it deserves. Lodgelink is hiring 760 workers over the next 5 years. Even if BDI doubles over the next 5 years, which is very conservative, you're most likely gonna end up beating the S&P 500.
Reguarly buying BDI shares can be a very smart thing to do over the next few years, as you currently get Lodgelink for free while the other assets are trading at the liquidation value.

The only thing I am a bit worried about is capital allocation. Hopefully they're giving Lodgelink all the capital that it needs in order to grow as fast as possible. It might be a bit hard for the management to relocate capital from their modular fleet to the more asset light Lodgelink, as the management team might be more comfortable investing in physical assets. 
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