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TSE:BDI
This summary was created by AI, based on 4 opinions in the last 12 months.
Black Diamond Group (BDI-T) is well-positioned to leverage the anticipated influx of capital from Canada’s infrastructure initiatives, particularly through its modular units and work camp business. The company boasts a large fleet of mobile units and benefits from a strong free cash flow, indicating financial stability. Analysts have noted the firm’s potential for profitability amid growing demand, particularly in the context of the Canada Build projects. With a solid insider ownership and adept management team, the company is poised for growth, especially with increased infrastructure spending in Canada. Despite some volatility, the company's decent valuation metrics and a consistent buyback policy reinforce its attractiveness as an investment.
Temporary housing accommodation camp provider. Have reached a point where they are more like four-star and five-star hotels because of the labour shortage. Stock has been hitting all-time highs. Does about $120 million in EBITDA. There are about 50,000 beds in the oil sands and they’ve got about 11,000 of them. A replacement cycle is going to happen because a lot of the beds are older. Because of West Coast LNG facilities that are likely to go ahead, one facility will require about 4000 beds. If 2 or 3 of them get going, you could get about 12,000 beds. Also, in the US and gaining quite a bit of traction. Made an acquisition in Australia last year that hasn’t panned out yet and probably not going to see any positive earnings for a couple of years. 4% dividend. If she were the CEO, she’d be considering raising some cash.
Temporary housing accommodation camps. Stock is near an all-time high. Had a softer Q2 than people were expecting but that was following a strong Q1. Trading at 6X EBITDA. Doesn’t expect you will get multiple expansion on this, but you will get growth. They’re in the oil sands, but are also exposed to LNG down the road so they are well-positioned.
Makes remote accommodations for mining, oil, gas companies. Try to put together accommodations in remote areas in 3 months which requires quite a bit of expertise. Although it is a cyclical, management has been able to execute very well. They use very conservative accounting to write down their equipment, etc. Probably not a bad entry point but it is in the sector where there are some headwinds right now.