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3101-3120 of 5048
May be...
I am still holding.
At least it continue stay above 39cents which still look good.
MISSION FAIL AGAIN, STILL STUCK AT 39.5CENTS
Turned around and still cheap
•
Amongst the cheapest O& G plays at 5x FY13F PE•
backlog potential upside from A$593m in the
pipeline
FY13F to grow 28%, backed by A$324m order•
Offers 30% potential return to fair value of S$0.50The Business
Leading engineering and construction services provider to the mining
and O& G industries in Western Australia. AusGroup fabricates,
constructs and installs structural steelwork and processing equipment
for the oil and gas (55% of FY12 sales) and mining (45%) industries.
Post installation, the firm also provides asset maintenance services
such as painting, insulation and scaffolding. AusGroup’s key
competitive advantage over peers is its comprehensive suite of
maintenance services.
Rising orderbook and margin improvement keep profits growing. A
rebound in its orderbook since 2HFY11 has led to more consistent
topline growth in the last two years. More importantly, the change in
focus on bottomline has resulted in steadily improving margins over
the last seven quarters. Based on an existing order backlog of
A$324m with another A$593m worth of contracts in bidding stages
and more new wins expected, we project FY13F earnings to grow
28% supported by margin improvement through better cost and
project management.
The Stock
Valuing AusGroup at S$0.50 per share. This implies 30% upside from
the current price. Our fair value is based on 8x FY13F earnings. This
valuation peg is at a 20% discount to sector average of 10x, given
that AusGroup is much smaller in size.
New contract wins to provide upside. AusGroup is well positioned to
benefit from the strong development of natural resources (eg.LNG) in
Australia and SEA as well as small-scale expansion/upgrading work in
the mining industries (iron ore). We believe stronger than expected
contract wins and consistent earnings delivery are key catalysts for a
stock re-rating.
Key risk. Earnings would take a hit if the company encounters cost
overruns or delays / difficulty in recovering claims for variation /
additional work done beyond the contracts. Contract wins could be
affected by slowing mining boom in Australia although AusGroup
has long term maintenance contracts to cushion the lull.
DBS also kiasu.. price its TP @ 20% discount to sector average..
means there's more upside potential if ausgrp's valuation is in line with the sector average..
anyway DBS already reported this counter is the LOWEST valuation O& G play..
buy cheap n good.. not expensive and gd..
gd luck :) dyodd
STILL NO MOVING. BUT CAN SEE THE SHORTIST IS WORRYING AND SHORT SMALL AMOUNT OF SHARE TO BRING IT DOWN TO 39CENTS.
HOPE LATER CAN TEST 40CENTS AGAIN.
DBS highlighted this counter.. looks set for more upside..
gd luck dyodd
Ausgroup – Turned around yet still attractive, potential
We also take this opportunity to spotlight a new name
Ausgroup, under the Equity Explorer format. The company
should enjoy a rising order book while margin improvement
keeps profit growing. We project a FY13F earnings growth
of 28%. Ausgroup is amongst the lowest valuation O& G
plays at 5x FY13F PE. We see a potential target of 50cts
based on 8x forward earnings that is 20% discount to
target of $0.50
sector average.
SGX is full of shortist and short term investor.
Have to wait for Afternoon after the Europe market open.
ozone2002 ( Date: 07-Sep-2012 09:42) Posted:
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top vol today.. 395.. testing 40c resistance..
gd aussie jobs figures..civmec also rally
Who are conned to sell?
Let BB to accummulate at cheap price, tomorrow continue to chiong and test 40 cent resistance.
shake out the weak holders..
jump from the intraday low of 37.5 to 38.5
gd luck dyodd
Full of Major News coming from US and Europe in these two weeks.
Think I'll wait for the dust to settle before I enter this counter.
Besides, dividend ex-date is still far away (mid october).
overall mkt sentiment is down..
so this counter is also affected by sentiment..
however ausgrp business still intact.. only the share price moves in tandem with the overall sentiment
Been in my radar for weeks now.
Buying volume is high on .385 and .39 so far. Someone's blocking this counter at these prices too.
Anyone here has other insights on this counter?
Unchanged, continue to consolidation. Selling is dry. May be need one more day to consolidate.
Strong holder will be rewarded!!!