# CXG - Coote Industrial



## boiler (27 October 2007)

This company has had an exceptional 11 months since listing in Dec 06. Share price has risen from $1 to $3 and looking at its PE Ratio it has a bit of catching up to do compared to its piers, LEI, BKN, and UGL to name a few.     It is a tightly held stock with the CEO Michael Coote holding 50% and Grahger group holding 10% of the 80m+  shares on issue. The larger acquitions are quality companies that have been around for 10 year or so. Looks to have a bright future especially in the current resource boom.

24 October 2007
COOTE INDUSTRIAL LIMITED (CXG) INCREASES FY08 FINANCIAL PERFORMANCE
OUTLOOK
Coote Industrial Limited an expanding provider of Engineered Transport and Services to
Defence, marine, power generation, rail, and resource industries, has revised its 2008 financial
year forecast NPAT from $15.5m to $19.04M (including recent acquisition Drivetrain)
Since listing in December 2006, Coote Industrial has successfully embarked on a selective
acquisition strategy culminating with the acquisition of South Spur Rail Services in June 2007.
Since June 2007, Coote Industrial has also acquired:
 FCD Container Logistics
 GEMCO Rail
 Industrial Powertrain, and
 Drivetrain Australia
These acquisitions are expected to be strong contributors to profits in 2008 and as a result
Coote Industrial is pleased to announce an upgrade of its previous forecast earnings as
follows:.
A$’000       Forecast      Prospectus     Actual
                 FY 2008       FY 2007       FY 2007
Revenue      269,906       56,585         69,416
EBITDA        39,626         11,935         15,653
NPAT           19,038         6,644           8,174

Coote Industrial continues to see strong activity in the markets in which it operates and
believes that the company is well positioned to expand through both acquisition and organic
growth opportunities
For further information contact:
Mike Coote
Managing Director
(08) 9251 8000


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## boiler (28 October 2007)

Western Australia
ASC has unveiled plans for construction of a $35 million submarine maintenance and upgrade facility at the Australian Marine Complex (AMC). 


Location 

Our new facility at the AMC is located at Henderson, sourth-west of Perth's CBD. 

Facility Development


The state-of-the-art facility represents a consolidation of all Western Australian submarine maintenance and upgrade activities, and commits us to undertake work in Western Australia indefinitely.  

Upon completion, the facility will accommodate 185 people and undertake several million dollars worth of submarine maintenance and upgrade work each year. 

ASC will benefit from the Western Australian Government's commitment to additional infrastructure, including a floating dock, as part of the Common User Facility (CUF).  

The CUF will also incorporate land transfer capability enabling us to move submarines from the wharf to our new facilities. 

Key features of our new facility include:
modern office accommodations; 
a large maintenance hall for undercover submarine work; and 
use of the Western Australian Government-funded floating dock, transfer facility and access to the CUF's eastern wharf extensions. 
The AMC is an integrated industrial estate servicing the defence, marine, resource and petroleum sectors, with about 100 businesses located there.

We will undertake our first submarine maintenance docking at the AMC in 2008.


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## michael_selway (28 October 2007)

boiler said:


> This company has had an exceptional 11 months since listing in Dec 06. Share price has risen from $1 to $3 and looking at its PE Ratio it has a bit of catching up to do compared to its piers, LEI, BKN, and UGL to name a few.     It is a tightly held stock with the CEO Michael Coote holding 50% and Grahger group holding 10% of the 80m+  shares on issue. The larger acquitions are quality companies that have been around for 10 year or so. Looks to have a bright future especially in the current resource boom.
> 
> 24 October 2007
> COOTE INDUSTRIAL LIMITED (CXG) INCREASES FY08 FINANCIAL PERFORMANCE
> ...




This looks like a great company

*Earnings and Dividends Forecast (cents per share) 
2007 -- -- -- 
EPS 17.2 -- -- -- 
DPS 5.9 -- -- -- *



> Coote Industrial Ltd (CXG) is the holding company of a multi-disciplinary group of companies that provide a broad range of services including mechanical, electrical and electronic engineering; diesel engine maintenance and manufacture; parts supply; industrial equipment manufacturing, logistics. The company comprises three key operating divisions: Coote Engineering; Coote Logistics; and Coote Manufacturing.




thx

MS


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## boiler (30 October 2007)

CXG - Coote Industrial website finally updated with latest information thankyou Mike;

http://www.coote.com.au/


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## boiler (1 November 2007)

CXG - Coote Industrial gearing up for further acquisitions with $70m Capital raising. Disappointing shares were issued at $2.40 but the facts are after approval at AGM.

Shares on issue........... 114553108 approx

Estimated NPAT 08......$19.038M

Estimated EPS............ (.166 cents)

PE Ratio @ ($2.40 Share Price) 14.46

PE Ratio @ ($3.00 Share Price) 18.07

+ $70m of new company acquisitions which will increase NPAT and decrease the PE Ratio all good...........


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## boiler (1 November 2007)

WA companies raising over $250m
1-November-07 by Andrew Hobbs

It's been a bumper day for capital raisings on the Australian Securities Exchange, with six Western Australian mining and mineral services companies in the midst of raising $250 million in additional funding. 

Canning Vale-based Ausdrill Ltd is seeking to raise $70 million, after calling a trading halt. It is understood to be planning a $50 million placement through Argonaut Securities and a $20 million share purchase plan.

West Perth-based Coote Industrial Ltd announced today it had raised $70 million through a placement, aiming to reduce recent acquisition debt and bolster working capital, subject to shareholder approval. The placement was undertaken by Bell Potter Securities

Nedlands-based Dioro Exploration NL completed its $C50 million capital raising - equivalent to around $57 million - ahead of its listing on the Toronto Stock Exchange.

West Perth-based mineral explorer Red 5 Ltd raised $35 million through east coast broking firm Southern Cross Equities. It issued 350 million shares at 10 cents each to fund an exploration program on its Siana gold project in the Philippines. 

Meanwhile Conquest Mining Ltd raised $22.4 million through the placement of 33 million shares at 68 cents each to position itself for further growth and provide funding for working capital, exploration and feasibility studies. Azure Capital was its adviser while Macquarie and Tolhurst were sponsoring brokers.

West Perth-based Halcyon Group Ltd raised $1.8 million to fund the Company's Nickel Extraction Scoping Study, exploration programs and provide general working capital.


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## michael_selway (1 November 2007)

boiler said:


> WA companies raising over $250m
> 1-November-07 by Andrew Hobbs
> 
> It's been a bumper day for capital raisings on the Australian Securities Exchange, with six Western Australian mining and mineral services companies in the midst of raising $250 million in additional funding.
> ...




Hm the cap raising hit the stock today

Are they really in that much debt?

thx

MS

"Coote Industrial Ltd (CXG) is the holding company of a multi-disciplinary group of companies that provide a broad range of services including mechanical, electrical and electronic engineering; diesel engine maintenance and manufacture; parts supply; industrial equipment manufacturing, logistics. The company comprises three key operating divisions: Coote Engineering; Coote Logistics; and Coote Manufacturing."


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## boiler (2 November 2007)

michael_selway said:


> Hm the cap raising hit the stock today
> 
> Are they really in that much debt?
> 
> ...




The placement at only $2.40 is what hit the stock IMO. The new shareholders will receive stock trading at a PE of 14.5 on forecast 08  earnings. Thats a good price in todays market compared to its peers. Now cxg has the opportunity to move forward with money for capital expenditure and acquisitions. It doesnt take much research to gain an understanding on the exceptional growth of the market sectors this company is focusing on.


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## boiler (18 November 2007)

Natural Fuels with new directors, strategy 
16-November-07 by Edited announcement


Latest News


Round 5: Returning Sledgehammers in View from the Arch - 16 Nov, 23:04pm
Dollar closes weaker as credit concerns resurface - 16 Nov, 15:56pm
Natural Fuels with new directors, strategy - 16 Nov, 15:55pm
Perron reaps $260m profit on Perth property empire - 16 Nov, 15:53pm 
Subiaco-based Natural Fuel Ltd has appointed three new directors and implemented an asset optimisation strategy over its Singapore plant, seeking to secure interim revenues while unfavourable market conditions remain, the company has announced. 

The company lost its chairman, former Liberal leader John Hewson, and two directors in October,after releasing an annual report showing a net loss of $47.8 million. 





The full text of a company announcement is pasted below


Asset Optimisation Strategy underway
Glycerine refining to begin at Singapore in January 2008
3 new non-executive Directors appointed
AGM Webcast on 28 November 2007
Natural Fuel Limited (NFL) is pleased to provide a progress and activity update on its Singapore and Darwin facilities and the current implementation of its Asset Optimisation Strategy, as outlined in the recent quarterly report.

Singapore

The Singapore biodiesel facility on Jurong Island is made up of three separate processing plants - known as trains. Each train contains a biodiesel processing unit and an independent, switchable glycerine refining unit. Singapore is one of few biodiesel plants with independent glycerine refining capabilities. Each train is capable of producing 200,000 metric tonnes per annum (mta) of biodiesel and can co-produce or independently refine 20,000 mta of pharmaceutical-grade glycerine.

The current unfavourable market conditions, including record high feedstock prices, have badly impacted the economics of biodiesel production for NFL and producers across the global industry. Many biodiesel producers have temporarily closed their facilities or are operating on a 'care and maintenance' basis. To combat these conditions, NFL has implemented a Risk Reduction Strategy at Singapore, which includes:


Maximising asset utilisation to secure interim revenues
Significantly reducing fixed costs on an operational and corporate level
Fast tracking access to lower cost alternative feedstocks - including jatropha
Asset Optimisation - Glycerine Refining

NFL's ability to purchase and refine low-value crude glycerine to produce high-value refined, pharmaceutical grade glycerine is a valuable strategic advantage that will create interim revenues to assist in covering fixed costs while feedstock prices remain high. 

Pharmaceutical grade glycerine is currently selling at up to US$1450 per metric tonne FOB South East Asia and is in high demand for use in the plastics, electronics, cosmetic and pharmaceutical industries. NFL is able to purchase the required crude glycerine through its extensive industry network. The Company is currently negotiating with a number of buyers who have expressed strong interest in long term supply of refined glycerine.

Current Status

Construction of Singapore's three glycerine refining units has been accelerated ahead of the original schedule to allow glycerine refining to begin as soon as possible. The table below outlines current expected startup dates for each train. 

Train 1 Glycerine Unit 1 in production January 2008
Biodiesel Unit 1 production-ready January 2008

Train 2 Glycerine Unit 2 in production February 2008
Biodiesel Unit 2 production-ready March 2008

Train 3 Glycerine Unit 3 in production March 2008
Biodiesel Unit 3 production-ready April 2008

Production

Singapore's Glycerine Units 1, 2 and 3 have been fast-tracked and production of pharmaceutical grade glycerine is expected to begin in January 2008 at Glycerine Unit 1, followed by Unit 2 and Unit 3.

Biodiesel Unit 1 (Train 1) will be commissioned to a full production rate through performance tests and will then be run at appropriate productions levels, depending on economic conditions, including feedstock pricing.

Biodiesel Unit 2 (Train 2) and Biodiesel Unit 3 (Train 3) will be brought up to production-ready status, but will not begin production until feedstock prices drop to within economically viable levels.

Darwin

The Darwin Biodiesel Facility is owned and operated by Natural Fuels Australia Ltd (NFAL), which is a 50/50 joint venture between Natural Fuel Ltd and Babcock & Brown Environmental Investments (BEI).

Following the installation of a trial centrifuge in July 2007, production of biodiesel to full specification was conducted during August and September at a reduced rate. This initial production enabled NFAL to export 8.8 million litres (or 7,700 metric tonnes) of biodiesel from Darwin in August - Australia's first ever shipment.

NFAL has experienced a number of delays and technical issues while commissioning the Darwin plant. In particular there have been issues surrounding the delivery, testing and installation of the permanent centrifuge, which separates biodiesel from impurities. 

Once successfully installed, it is expected that the permanent centrifuge will allow production of on-spec biodiesel and the plant will then be run at appropriate productions levels, depending on economic conditions.

Asset Optimisation - Glycerine Refining

As at NFL's Singapore facility, the NFAL Darwin plant is also capable of producing refined, pharmaceutical grade glycerine, independent of biodiesel production. 

Production of refined glycerine at Darwin has occurred to better than target specifications (99.5%) and at the better than nameplate rate of 12,000 mta. Production of refined glycerine is not dependent on the installation of the permanent centrifuge or the current unfavourable biodiesel market conditions. Therefore, NFAL is implementing a glycerine refining strategy for the production of pharmaceutical grade glycerine at Darwin.

Although it is difficult to predict when the current unfavourable market conditions will improve, once commissioning of the permanent centrifuge is completed, it is intended that biodiesel production will re-commence at appropriate levels, once feedstock prices lower and market dynamics recover.

Appointment of New Directors

Natural Fuel is pleased to announce the appointment of three (3) non-executive directors to the Board who have proven and significant industry experience. The Board's Nomination Committee considered a range of candidates for appointment as nonexecutive directors. The Committee was focused on selecting candidates who demonstrate the key skills and expertise that will add value to NFL's forward strategy. 

Martin Kirwan - Non Executive Director 

Mr Kirwan has extensive petrochemical industry experience having worked for the BP Group for 30 years. Mr Kirwan was the inaugural Managing Director of Southern Oil Refineries taking the business from a green field to a fully operational facility manufacturing re-refined base oils from used oil. Mr Kirwan also served as Director of the Federal Government's Oil Stewardship Advisory Council and is currently owner and CEO of Enviro Oil Co of Australia Pty Ltd.

Michael Coote - Non Executive Director

Mr Coote is the founding Director and CEO of Coote Industrial Limited which listed on the ASX in 2006. Mr Coote was involved in heavy mining equipment, waste crushing, conveying projects and locomotive maintenance for Mt Newman Mining (BHP), and founded Globe Turbocharger Specialties Australia (GTSA). GTSA was re-branded as GTSA Engineering which later evolved into the publicly listed Coote Industrial Ltd. 

Robert Rooke- Non Executive Director 

Mr Rooke is a Foundation Fellow of the Australian Institute of Company Directors and is currently a director of Centrepoint Finance WA Pty Ltd, Proffessus Limited (Professionals Real Estate Group), African Strategic Minerals Limited and Operation Rainbow Limited. Mr Rooke has served on a diverse range of public company boards in the automotive, medical products and mining sectors and is a partner in a financial consulting business that provides services for an international oil & gas company.


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## Kat82 (25 November 2007)

What is the relationship between NFL and CXG other than the fact that Michael Coote is a non-executive director of NFL?


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## boiler (6 December 2007)

Coote is into recycling plastic for fuel production. Coote has an interest in alternate fuels. Does anyone know why this company has taken a dive other than the $2.40 placement price?


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## boiler (6 December 2007)

http://www.brr.com.au/event/CXG/2180/33990

Have a listen has potential if they get it right current holders not buying it.


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## Miner (10 March 2008)

Does any one know what is happening to this company? Its directors have been buying defying all odds at a much higher price. Today the share price jumped significantly at a cum dividend against the market trend. From 11 March the share will be ex dividend. The CMD also bought heavily NFL shares.

Shoudl there be any take over or acquisitions - why four directors bought so heavily on a thinly traded share ?

It was a buy by few brokers only couple of months back who also rated ANG as buy.

Any update from else where ?


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## Miner (11 March 2008)

I did not hear back from the gurus in this forum. Obviously CXG does not appeal with a very low turnaround. But today I was surprised to see a profit rose to 132% in a sluggish market and the share rose from $1.3 to $1.4 today when most of them are going down.  I am watching this share and surprised to see that only 8000 shares changed hands. Mike Cootee and associates holding a large amount but he sold some couple of months ago too.
I am guessing NFL without a CEO now will be a take over target by CXG. But what really it means - any growth prospective or just an opportunity for the directors of CXG. 

Looking for some light here.


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## robert toms (11 March 2008)

I hold a few of these...I can only think that their presentation re their prospects and results pleased a few...but as you say,very thinly traded.
That they are going to tackle some their debt was also a positive....until recently  their debt level,what is it 40 percent ?would not have been worth much of a comment,but in todays market it is.
I have hopes for this company ...their strategy is clear and they look ok...cross my fingers!


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## Miner (11 March 2008)

robert toms said:


> I hold a few of these...I can only think that their presentation re their prospects and results pleased a few...but as you say,very thinly traded.
> That they are going to tackle some their debt was also a positive....until recently  their debt level,what is it 40 percent ?would not have been worth much of a comment,but in todays market it is.
> I have hopes for this company ...their strategy is clear and they look ok...cross my fingers!




Thanks Robert Toms for the update. Their financial details however said year ending on 30 Dec 08 and I thought it should have been 30/12/07 !


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## lazyfish (19 March 2008)

Miner said:


> Does any one know what is happening to this company? Its directors have been buying defying all odds at a much higher price. Today the share price jumped significantly at a cum dividend against the market trend. From 11 March the share will be ex dividend. The CMD also bought heavily NFL shares.
> 
> Shoudl there be any take over or acquisitions - why four directors bought so heavily on a thinly traded share ?
> 
> ...




I didn't quite get everything but I thought the director buying was related to placement/interest free loan made to them in Nov/Dec last year. The price back then was around $2.50, so I guess $2.05 was still cheap back then. I actually picked up a few recently after seeing one of their trucks busying working on a sunday at the port of fremantle :


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## boiler (28 May 2008)

Nice presentation released today NPAT of $19M FY08 still stands with a month to go, looks good. Dividend of .06 cents attractive at current share price.


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## Miner (28 May 2008)

boiler said:


> Nice presentation released today NPAT of $19M FY08 still stands with a month to go, looks good. Dividend of .06 cents attractive at current share price.




Yes they are
I only have had a communication with CXG Chief this week. His advise was that the market is behaving erratically and not reflecting the strenght of thsi share. They are moving ahead with their forecast and will maintain it.
It was pleasant to see that what he said he meant. Considering ANG performance I think CXG offers more value to its investors and customers as well in its current price.

DYOR


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## michael_selway (28 May 2008)

Miner said:


> Yes they are
> I only have had a communication with CXG Chief this week. His advise was that the market is behaving erratically and not reflecting the strenght of thsi share. They are moving ahead with their forecast and will maintain it.
> It was pleasant to see that what he said he meant. Considering ANG performance I think CXG offers more value to its investors and customers as well in its current price.
> 
> DYOR





yeah not bad teh numbers for this one

*Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 17.2 21.4 22.9 24.2 
DPS 5.9 11.5 13.4 14.1 *

thx

MS


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## robert toms (29 May 2008)

Yes I bought a few more yesterday at $1.21.5 ,my first buy at $1.95 is still well under water ...but hope springs eternal.Their announcement looked good....but if you have read it,is this one of the most diverse industrials around?
It bamboozled me with details of their scope!


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## Miner (29 May 2008)

Bell Potter has initiated coverage on CXG now with a buy
Word of caution on BPS - they were the lead manager for BYL., 

They ramped up the BYL to the clients and still maintaining neutral. They did the same when it was 55 cents and then telling the same story at 30 cents

Why I told the above please DYOR before relying on BPS recommendation alone.

However this report has some substantial information and you may like to read if not got already


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## boiler (23 July 2008)

Caterpillar Announces Acquisition of Leading Brazilian Locomotive Component and Transit Car Services Company

MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of Caterpillar's Progress Rail Services Division

PEORIA, Ill., June 24 /PRNewswire-FirstCall/ -- Caterpillar Inc. , has reached an agreement to acquire all of the capital stock of MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE). Based in Diadema and Hortolandia -- in Sao Paulo State, Brazil, MGE is a manufacturer and reconditioner of traction motors, main and auxiliary generators, control equipment and auxiliary components for locomotives and transit cars. In addition, MGE maintains, modernizes and rebuilds transit cars and locomotives. Customers include various transit authorities and railroads in South America. MGE is a market leader in the Brazilian market for the products and services it provides and is recognized for its quality and customer satisfaction. MGE will become part of Caterpillar's Progress Rail Services Division (Progress Rail).

"The acquisition of MGE represents an important step in Progress Rail's international growth strategy," said Billy Ainsworth, Caterpillar vice president with responsibility for Progress Rail. "We welcome the management and employees of MGE to Progress Rail and Team Caterpillar and look forward to serving MGE's existing customers as well as providing products and services to the rapidly growing rail and transit industry in South America."

Progress Rail is one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America. These products and services include various types of rolling stock and track infrastructure. Headquartered in Albertville, Alabama, Progress Rail operates in more than 110 locations with 4,625 employees in the United States, Canada and Mexico. The acquisition of MGE is the first business expansion for Progress Rail outside of North America.

"The continued growth of our service businesses is an important part of Caterpillar's Vision 2020 strategy, and the acquisition of MGE is a logical first step as Progress Rail expands its proven and successful business model outside of the North American market," said Steve Wunning, Caterpillar Group President.

Progress Rail and MGE see important synergies leveraging Progress Rail's extensive range of products and services, MGE's relationships with the Brazilian railroads and transit systems, and Caterpillar's relationships with Brazilian mining and construction industries. Caterpillar has had a presence in Brazil since 1954 and continues to invest in its Brazilian operations. Caterpillar's primary administrative and operational activities are located in the city of Piracicaba, State of Sao Paulo. In addition, Caterpillar and its independent dealer network in Brazil service and support an extensive range of construction and mining equipment operating in Brazil's large and growing mining and construction industries.

Ronaldo H. Moriyama and Carlos A.A. Roso, who were principal MGE shareholders, will continue to serve as co-managing directors reporting to Billy Ainsworth as part of Progress Rail.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com/.


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## michael_selway (23 July 2008)

boiler said:


> Caterpillar Announces Acquisition of Leading Brazilian Locomotive Component and Transit Car Services Company
> 
> MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of Caterpillar's Progress Rail Services Division
> 
> ...




Hm how positive do you think this might be?

*Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010 
EPS 17.2 21.4 22.9 24.5 
DPS 5.9 11.5 13.4 14.1 *


thx

MS


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## boiler (23 July 2008)

michael_selway said:


> Hm how positive do you think this might be?
> 
> *Earnings and Dividends Forecast (cents per share)
> 2007 2008 2009 2010
> ...




Caterpillar  acquired Progress Rail Services for $1.0 billion in cash, stock and assumption of debt in 2005. Alliances sometimes end up as aquisitions down the track, (not too soon i hope). Cats a big company its looks positive either way to me.


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## Trader Paul (26 July 2008)

Hi folks,

CXG ... expecting some positive news this week, around 30072008,
as 2 positive time cycles come together ... 

have a great weekend

paul



=====


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## Pioupiou (2 September 2008)

I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason.  Results for 08 were published on Friday, and EPS was 21 cents.  The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling.  I have too many to consider buying more - you know the logic - spread the risk.

The nexus between CXG and Caterpillar's Progress Rail is intereting.  Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come.  See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb. 

Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG.  I have selected a PER of 10, whereas it is now has a PER of 6.


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## michael_selway (2 September 2008)

Pioupiou said:


> I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason.  Results for 08 were published on Friday, and EPS was 21 cents.  The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling.  I have too many to consider buying more - you know the logic - spread the risk.
> 
> The nexus between CXG and Caterpillar's Progress Rail is intereting.  Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come.  See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb.
> 
> Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG.  I have selected a PER of 10, whereas it is now has a PER of 6.




Hi yeah, coudl be interesting, have to wait and see

Earnings and Dividends Forecast (cents per share) 
2008 2009 2010 2011 
EPS 20.6 22.9 24.5 -- 
DPS 8.5 13.4 14.1 -- 

thx

MS


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## boiler (4 September 2008)

Pioupiou said:


> I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason.  Results for 08 were published on Friday, and EPS was 21 cents.  The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling.  I have too many to consider buying more - you know the logic - spread the risk.
> 
> The nexus between CXG and Caterpillar's Progress Rail is intereting.  Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come.  See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb.
> 
> Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG.  I have selected a PER of 10, whereas it is now has a PER of 6.




Well done Pioupiou, i also bought a further 20000 at $1.15 on Monday total 60000.Have been waiting for this report all month, nice result. I think Chinas economy is the key for this one. Its not doing so well at the moment but chinese government is loaded with cash. cxg share price is discounted compared to its peers thanks to its debt, but its potential is interesting to say the least. Check out their new web site http://www.coote.com.au/ Good luck


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## boiler (9 September 2008)

Gemco on track for growth - WA Business News28 Aug 2008 ... WA Business News understands Gemco Rail is in talks with Oakajee Port and Rail Pty Ltd to be involved in the development of the $2 billion ...

Does anyone have access to the complete article? Sounds interesting.


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## arae (29 September 2008)

This one still seems to be flying under the radar as a great value stock. 

Let's consider the following;

* Annual report announced 191% increase in profit
* Revenue increase of 400%
* EPS increase of 20% to 21c
* Dividend increase to 8.5c
* FY09 guidance with net profit after tax target of $25m, up 14% from FY08

Given the current price of $1.015 that gives a *PE of 4.68*. *Additonally the dividend (ex dividend date in less than 2 weeks) pays about 8.5%* 

Around $1 also provides a strong base since its float.

Keeping in mind it's a lightly traded stock and the owner, Michael Coote owns over 1/3 of the issued shares. So it's nice knowing his interests and the shareholders are closely aligned.


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## Family_Guy (5 January 2009)

Whats doing with this stock? 26c atm. I can't see any issues. Among other things, EPS is nice, PE is ultra low at 1.3 and i just can't seem to find a reason not to buy it.....am i blind?
Any idea of why this is trading so so low, like 90% on yr high?


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## robert toms (5 January 2009)

I hold as well and hope that their financing issued get resolved soon.
In last years annual report they revealed that had quite a bit of debt but believed that they could pay it reasonably quickly into this financial year.
Coote came up with a plan to sell 12 of their locomotives to a private unlisted company...and then lease them back.
The private company has trouble raising $80 million from the banks...I believe that this has not yet been resolved.Hence the uncertainty and the low share price.
I optimistically wait for a positive market announcement ...but it drags on


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## michael_selway (5 January 2009)

robert toms said:


> I hold as well and hope that their financing issued get resolved soon.
> In last years annual report they revealed that had quite a bit of debt but believed that they could pay it reasonably quickly into this financial year.
> Coote came up with a plan to sell 12 of their locomotives to a private unlisted company...and then lease them back.
> The private company has trouble raising $80 million from the banks...I believe that this has not yet been resolved.Hence the uncertainty and the low share price.
> I optimistically wait for a positive market announcement ...but it drags on




Hm yeah debt is any issue for those who have ti in this environment







I wish they had more disclosure about this 

thx

MS


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## boiler (31 January 2009)

Sold out over a month ago ,fundamentals have changed too much risk involved, Goodluck to holders....


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## dbcok (1 September 2009)

The announcement was worse than expected ,with Coote making a loss.
Too much debt and failed purchasing decisions,The outlook did not give any encouragement for an an early turnaround.
Only two years they raised capital at $2.40 a share...the glory days are gone.


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## jbocker (1 October 2009)

I have bailed out of this stock - someone told me if you cannot understand the business then get out.
The 'Not Fair but Reasonable' quote by the independent expert was enough for me. I kept reading the report but can only could see Elph having Coote over a barrel, with its heavily discounted capital raising deal.
This all originated with Elph helping out with the Cootes and Greentrains deal. All a bit too messy (Greentrains being partly owned by Cootes parents, must have made interesting dinner table discussions). 

Arghh go read the report. Hope they get it all sorted. 
Dont take my advice on this stock - when I say I cannot understand the business - that applies to most stock!


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## dbcok (1 October 2009)

jbocker said:


> I have bailed out of this stock - someone told me if you cannot understand the business then get out.
> The 'Not Fair but Reasonable' quote by the independent expert was enough for me. I kept reading the report but can only could see Elph having Coote over a barrel, with its heavily discounted capital raising deal.
> This all originated with Elph helping out with the Cootes and Greentrains deal. All a bit too messy (Greentrains being partly owned by Cootes parents, must have made interesting dinner table discussions).
> 
> ...




I came to the same understanding after reading the report-the Cootes parents being involved in Greentrains was interesting,seems like Greentrains was a purpose-formed company.


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