Australian Investment Blog
17/07/2018
Bingo (BIN) rallies out of the dumpster | Bingo Reports
Stock
Bingo (BIN) $2.66 as at 17/07/2018
Event
A mid-cap stock we have had on our radar for some time, waste management company Bingo rallied strongly today. Recovering from early weakness and reversing much of the recent decline. Early in trade, BIN was down almost 5%, only for their fortunes to turn after an announcement by the company at ~11AM and the stock closed 5% higher. Bingo has been heavily discussed in the media recently as the market ponders the impact of tariffs for waste entering Queensland. Furthermore, the integration of $141mil worth of acquisitions late last year. The short sellers have been creeping into Bingo. Under the theory that growth has only been driven by acquisitions rather than organically. While others fear the Queensland levy will reduce revenues rather than lift them like the company has forecast. Other short sellers simply believed that the founding family, the Tartak’s, would be looking to sell down their ~30% stake in the company as they come out of escrow which would encourage the stock lower. Today the company announced the family had no intention to sell and reiterated guidance which seemed to cause short covering. The stock bounced 10% intra-day.
Bingo Industries (BIN) Chart
Market Matters Take/Outlook
MM like Bingo and see upside on a technical and fundamental basis although liquidity may keep us at bay. Report the full report here
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