If RTO n dual listing cnx.....ausgroup will collapse then.....too risky to go in
Peter_Pan ( Date: 20-May-2013 11:21) Posted:
Too much negativity and obstacles for Ausgroup
Peter_Pan ( Date: 20-May-2013 10:53) Posted:
The downturn in commodity markets has prompted some energy and mining companies to defer certain projects. Ausgroup may run out of work within the year as its current order book of A$215 million will last no more than two quarters. Earnings comcerns are likely to dominate the relisting revaluation potential. The way the things are developing, expect Ausgroup to dive into the red this quarter. Listing in ASX during the downturn in commodity markets which has prompted some energy and mining companies to defer certain projects may not be a good idea for Ausgroup. The reception may be lukewarm. Bumpy road ahead for Ausgroup for now. Investors interested in buying may want to consider carefully. The RTO story does not bode well for the share price so far. Even DMG has made a drastic downgrade to Ausgroup's target price. Other analysts don't even bother to give coverage on Ausgroup. AusGroup has been badly affected by the hold ups in awarding work at North West liquefied natural gas projects and revenue dropped as bidding for scaffolding, insulation and painting work at Chevron's Gorgon and Wheatstone projects had not yet materialised into contracts.
The downturn in commodity markets has prompted some energy and mining companies to defer certain projects. Ausgroup may run out of work within the year as its current order book of A$215 million will last no more than two quarters. Earnings comcerns are likely to dominate the relisting revaluation potential. The way the things are developing, expect Ausgroup to dive into the red this quarter. Listing in ASX during the downturn in commodity markets which has prompted some energy and mining companies to defer certain projects may not be a good idea for Ausgroup. The reception may be lukewarm. Bumpy road ahead for Ausgroup for now. Investors interested in buying may want to consider carefully. The RTO story does not bode well for the share price so far. Even DMG has made a drastic downgrade to Ausgroup's target price. Other analysts don't even bother to give coverage on Ausgroup. AusGroup has been badly affected by the hold ups in awarding work at North West liquefied natural gas projects and revenue dropped as bidding for scaffolding, insulation and painting work at Chevron's Gorgon and Wheatstone projects had not yet materialised into contracts.
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