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CIM - CIMIC Group

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Re: LEI - Leighton Holdings

anyone know if LEI shares held in an IB account are also eligible to take up the hochtief offer, given that it is IB's name that's on the register, and not ours? can we get IB to accept it on our behalf?

also what would happen if one was to dispose of their LEI shares (or more accurately in my case, have them called away) after today (from what i can tell, the stock trades ex the rights to this offer next monday, since only those on the register on the 21st are eligible) but before the offer expires? if we take up the offer, having already sold all our units with the rights attached, then do we end up with a short position afterwards? or do we lose the rights to take up the offer by selling?

i hold LEI stock but i also sold march european 21.01 covered calls over my entire position last week (before the offer was known). obviously at this stage there's a good chance it'll expire ITM and there's also a good chance it'll expire worthless. trying to work out at the moment whether i should close out all the calls, close out 37.5% of them, or let them run to expiry (and let my stock get called away if it comes to that).

i'm thinking i probably need to buy back the lot if they're going to expire ITM, as i'm guessing shareholders would have to retain their entire holding right up until the end of the offer period to be eligible to dispose of 37.5% of their holding at 22.50? gonna be a pain in the butt to do so... the european contracts are so illiquid. none of the MMs showed a spread to the market all day today for those contracts. i shoved a token way off market bid in there, the MMs are supposed to show a spread once i've indicated i'm looking to trade those contracts by doing that, but after 15 mins, nothing. hope it's not like that on expiry day if the things are ITM :mad:
 
Re: LEI - Leighton Holdings

On April 24th, 2015, Leighton Holdings Limited (LEI) changed its name and ASX code to CIMIC Group Limited (CIM).
 
The offshore arm of Australian company Leighton Holdings paid millions of dollars in bribes to middlemen as part of an audacious strategy to influence Iraq’s deputy prime minister, oil minister and other senior officials, and win more than $1.3 billion of oilfield contracts.

Leighton’s 18-month campaign of corruption, bribery, fraud and money laundering is revealed in the biggest leak of documents in the oil industry’s history.
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Source: http://www.smh.com.au/interactive/2016/the-bribe-factory/day-1/leighton-news.html
 
You have got to give it to these guys....

In the half year results announcement, it said

Our continued focus on sustainable, cash-backed profit is reflected in our generation of operating cash flow of almost $1.2 billion during the 12 months to 30 June 2016
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Hmmm... why not mention the actual operating cash flow in the HY just past? A reported profit of $265.2m vs operating cashflow of $74.2m :eek:. Did someone say cash-backed?

Let's see how the market pick them apart tomorrow.
 
skc said:
You have got to give it to these guys....

In the half year results announcement, it said



Hmmm... why not mention the actual operating cash flow in the HY just past? A reported profit of $265.2m vs operating cashflow of $74.2m :eek:. Did someone say cash-backed?

Let's see how the market pick them apart tomorrow.
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Another bit I noticed was how they gave revenue as a Q on Q comparison rather than H on H. A nice way to avoid the negativity.
There aill be a lot more bear eyes on this stock now since the destructive analyst report was released.
 
CIMIC Group Limited (CIM, formerly Leighton Holdings Limited) provides construction, mining, mineral processing, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. It operates in more than 20 countries throughout the Asia Pacific, the Middle East, North and South America and Sub-Saharan Africa.


It’s not only the smaller shares which can jump in price, this one is up 13% at the moment. The market obviously liked the Investor Presentation. https://tinyurl.com/y7v6ssa5
 
Another class action notice. These are fun because it makes me go back and review my trade. This time it's Cimic formerly known as Leighton Holdings (LEI). The period involved in the class action is almost three years.

First thing I do is check the chart to note my setups. I'm hoping that my actual trade did comply with my trade plan (gulp).

LEI was in a down trend for most of 2010 - 2012 and I knew I wouldn't have bought it then. For large cap trades my TP uses a weekly 123 low pattern. There were three opportunities that I could have used. The first setup produced a ripper of a trade. I didn't take that one. I traded the second one and got zapped by heavy selling and sustained a -1.4R result. I checked and there was no news released during that week. The third setup started well but was zapped by poor news. This would have produced a disappointing, but small loss.

My loss was not caused by the conduct of the respondent as alleged by the applicant in the claim. I'll opt out of this one also.

The outcomes of the three setups, a good win, a bad loss,a small loss and an overall profit is what I'd expect from a short term trading strategy.

lei2808.PNG
 
Country Lad said:
CIMIC Group Limited (CIM, formerly Leighton Holdings Limited) provides construction, mining, mineral processing, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. It operates in more than 20 countries throughout the Asia Pacific, the Middle East, North and South America and Sub-Saharan Africa.


It’s not only the smaller shares which can jump in price, this one is up 13% at the moment. The market obviously liked the Investor Presentation. https://tinyurl.com/y7v6ssa5
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CIM has stayed up in the top 1/3 of the recent move up since reporting in July and threatening to breakout (again) on this last day before going ex div tomorrow. Some news today on future contracts.
Tempting but not holding atm
CIM.png
 
The price of CIM has been stuck in a large range and is now bouncing of the lower support level.

The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread.

Setup: Bouncing off support ($40), BO-HR Grade A
Buy limit: 44.35 iSL 41.00, initial target 51.00

cim250119.PNG
 
Following up from my previous post. Price did go higher and hit the target of $51 (arrowed on chart). Since then price has struggled to go higher and spiked lower on poor news in May19.
I was considering a buy if price broke out again at $47, but it didn't and has spiked lower again after another poor company update. I'm slowly learning to stay away from companies that produce one bad report as there is usually another one or two to follow.

Early signs that this reporting season will contain more surprises.

cim1807.PNG
 
From a technical/chartist perspective, absolutely not. A little bit of commonsense would see you reading the latest report and understanding why some instos have decided to sell today. You may form an opinion on the business outlook by comparing today's news with the May19 report. Is the business improving or do they still have problems in one or more divisions?
 
peter2 said:
From a technical/chartist perspective, absolutely not. A little bit of commonsense would see you reading the latest report and understanding why some instos have decided to sell today. You may form an opinion on the business outlook by comparing today's news with the May19 report. Is the business improving or do they still have problems in one or more divisions?
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Pete
You are an acknowledge, astute analyst and I do value your comments, postings, data analysis. Reading your postings, it appears CIM is a hot potato and more troubles are coming.
But I am confused to read this one - guidance maintained and market reaction
https://www.asx.com.au/asxpdf/20190717/pdf/446pdr38hgqxvq.pdf
Yes, Leighton was at $24 and then after the acquisition, CIM was roaring success.
https://www.asx.com.au/asxpdf/20190717/pdf/446pdtjw74ssjm.pdf - solid cash flow. Sorry, do not get it and firmly believe you have good reasons - let us know more .
 
Miner said:
- let us know more .
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I have no real idea Miner. My fundamental ability to read balance sheets etc is basic at best …… People think dabbling in Specs is fraught with danger, but I still find trying to make sense of massive drops in Blue Chips really difficult to work out. I know its still just 20%, but 20% of $14 Billion is a lot of moola:eek:
 
cim1110.PNG


Since my last post the CIM price fell further and even traded <$30 briefly. The chart looks much better now as the price has stopped falling. There's a base pattern (sideways consolidation) with a recent higher low (HL). This is enough for me to consider buying a partial position as the reward potential is much higher than the risk of being wrong at this time.

The initial targets are marked by the gaps in the chart. There's one at $35 and the big one at $45. If I bought the BO at 32.70 my iSL would be at $30 (trade risk is 2.70). My initial target would be $45 providing a reward of 12.30. Risk $3 to earn $12 is acceptable for me.

Let me be clear that this setup is a reversal setup. Prices tanked following the May19 and Jul19 company reports. I have no idea when the next report will be released. $30 should provide some support. The monthly chart shows possible support at $27. Price won't go to $45 quickly after being hammered so hard. The base pattern on the monthly chart lasted five years before investors were happy to pay >$25.
 
CIMIC share price has plummeted as investors try to revalue the stock in light of the news!!!!

CIMIC will recognise a one-off post-tax impact of around $1.8 billion in its 2019 financial statements, representing all of CIMIC’s exposure in relation to BICC.

ASX announcement today
UPDATE ON BICC STRATEGIC REVIEW AND IMPACT ON 2019 RESULTS (uploaded)

23 JANUARY 2020
UPDATE ON BICC STRATEGIC REVIEW AND IMPACT ON 2019 FINANCIAL RESULTS
Update on strategic review of BICC CIMIC Group today announced that it has completed an extensive strategic review of its financial investment of a non-controlling 45% interest in BIC Contracting (BICC), a company operating in the Middle East region.

As a part of this review, CIMIC initiated a confidential M&A process in respect of its financial investment in BICC. Discussions continue with a shortlist of potential acquirers for all or part of BICC.

In addition, in the context of an accelerated deterioration of local market conditions, BICC is engaging in confidential discussions with its lenders, creditors, clients and other stakeholders.

After thorough evaluation of all available options, CIMIC has decided to exit the region and to focus its resources and capital allocation on growth opportunities in its main core markets and geographies (Australia, New Zealand and Asia Pacific).

Financial impact
In this context, CIMIC has reassessed its financial exposure to BICC, mainly shareholder loans and financial guarantees.

CIMIC will recognise a one-off post-tax impact of around $1.8 billion in its 2019 financial statements, representing all of CIMIC’s exposure in relation to BICC.

The aforementioned impact includes an expected cash outlay net of tax of around $700 million during 2020, as CIMIC’s financial guarantees of certain BICC liabilities materialise. CIMIC has committed facilities and cash available to meet all obligations as required.

Consequently, CIMIC will not declare a final dividend for 2019.

2019 guidance
Excluding the BICC impact, CIMIC expects to report NPAT for 2019 of around $800 million, in line with its 2019 guidance. CIMIC expects to announce its 2019 financial results on 4 February 2020.

Issued by CIMIC Group Limited ABN 57 004 482 982 www.cimic.com.au
Authorised by the CIMIC Group Board of Directors

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