Australian (ASX) Stock Market Forum

CIM - CIMIC Group

Jump to new
Re: LEI - Leighton Holdings

At what point does it become feasible to buy this share :confused: It finished at a 1 year low today :confused:
 
Re: LEI - Leighton Holdings

This was a laugh.

''Now you will all probably laugh at me for this but I thought it might be worth me taking you through this,'' Gregg told the Leighton full-year results briefing yesterday when slide No.25 came up.

Headed ''One-off adjustments give a profit of around $600m'', the chart showed that Leighton would have made an underlying profit of $600 million had it not been for a $690 million loss it incurred from the Brisbane Airport Link toll-road project, a $355 million loss on its Victorian desalination project and a $206 million loss from its Middle Eastern operations.
Advertisement: Story continues below

''The performance of the business is quite strong on an underlying basis,'' Gregg explained.

CBD has calculated Leighton would have reported an almost $20 billion profit for the year if it had not factored in costs (such as materials, labour and plant costs) and writedowns.

Read more: http://www.smh.com.au/business/nice-profit-shame-about-the-red-ink-20110815-1iutx.html#ixzz1VAImKjvY
Click to expand...

https://www.aussiestockforums.com/forums/showthread.php?t=5942&p=631978&highlight=lei#post631978
 
Re: LEI - Leighton Holdings

skc said:
I am afraid you are looking like a perfect contrarian indicator...

We've all done it at some point in your trading/investing life.
Click to expand...


I don't think so, looking back I did the right thing in selling it.
 
Re: LEI - Leighton Holdings

fanger said:
I don't think so, looking back I did the right thing in selling it.
Click to expand...

Yes definitely a good sell. Saved yourself 20% even with the rises in the last 2 days.

I thought at the time all the bad news were out but how wrong was I.
 
Re: LEI - Leighton Holdings

Great, labor's desal plant is going to be producing water by july!!
We could be back in flood by then!
We all pay more for water because of it.:fish:
 
Re: LEI - Leighton Holdings

I bought this as a recovery stock at $17.50. It is continuing the recovering, up 10% today.

Cheers
Country Lad

PS As I post this, looks like another 2% in the match-out.
 
Re: LEI - Leighton Holdings

LEI lost the Chair and 2 independent directors as they are not happy with the Spanish owner.

Stock down 10%.

I am guessing some righteous fund manager thinks that the Board should be independent so decided to vote with their feet... but what's the actual fundamental implications of such an event?

Apart from a bit of fun boardroom drama, it doesn't sound that meaningful when it comes down to earnings and revenue etc? Are they worried that a Spanish rule would be inferior? :confused:

A good pairs candidate to hold for a Monday bounce I think....
 
Re: LEI - Leighton Holdings

skc said:
LEI lost the Chair and 2 independent directors as they are not happy with the Spanish owner.

Stock down 10%.

I am guessing some righteous fund manager thinks that the Board should be independent so decided to vote with their feet... but what's the actual fundamental implications of such an event?

Apart from a bit of fun boardroom drama, it doesn't sound that meaningful when it comes down to earnings and revenue etc? Are they worried that a Spanish rule would be inferior? :confused:

A good pairs candidate to hold for a Monday bounce I think....
Click to expand...

BLD :)
 
Re: LEI - Leighton Holdings

SilverRanger said:
BLD :)
Click to expand...

My post was dated back in March?! That trade worked out quite nicely.

Having said that... I did put a LEI/LLC trade on yesterday but spat it back out first thing this morning for a loss. Citi downgraded LEI to a sell and I didn't want to be there for the fun. On hindsight I should have just reversed...

Back in Feb 2012 when it announced that there are potential breaches of ethical codes etc, the share price fell sharply and remained weak for another week or so. It may be similar this time around. However, LEI has run up pretty hard (on the back of a so-so result) so imo much of the fall is really just retracing some of the previous up move.

Fundamentally nothing terribly new or bad happened. Afterall it was just a newspaper story which the police is already investigating. It's not like they will lose their wheat export monopoly like AWB. They may lose a few government contracts overseas, and there's some words about how it will impact further their cash collection in the Middle East. So on these grounds the 12% fall seems like an over-reaction. But valuation wise it isn't a no-brainer bargain or anything like that either.
 
Re: LEI - Leighton Holdings

skc said:
Fundamentally nothing terribly new or bad happened. Afterall it was just a newspaper story which the police is already investigating. It's not like they will lose their wheat export monopoly like AWB. They may lose a few government contracts overseas, and there's some words about how it will impact further their cash collection in the Middle East. So on these grounds the 12% fall seems like an over-reaction. But valuation wise it isn't a no-brainer bargain or anything like that either.
Click to expand...

The fines at the top of the range (an unlikely outcome, IMO) would be $1.89billion
Under Australian law, it is an offence to bribe a foreign public official even if a bribe may be seen to be customary, necessary or required in the situation, and even if there is official tolerance of the bribe.

The maximum penalty for an individual is 10 years imprisonment and/or a fine of 10,000 penalty units (that is, $1.1 million). For a body corporate, the maximum penalty is the greater of the following three amounts: 100,000 penalty units ($11 million); 3 times the value of the benefits obtained (if calculable); or 10% of the previous 12 month's turnover of the company concerned.

Companies should be aware that they may be liable for the actions of their employees and agents under anti-foreign bribery laws. This may include circumstances in which the bribery of foreign public officials was encouraged or tolerated or where there was a failure to create and maintain a corporate culture that required compliance with anti-foreign bribery laws.

These penalties reflect the serious nature of bribery and the detrimental effect it has on Australia's trade and reputation, as well as international governance.
Click to expand...

http://www.dfat.gov.au/issues/measures-against-corruption.html
 
Re: LEI - Leighton Holdings

McLovin said:
The fines at the top of the range (an unlikely outcome, IMO) would be $1.89billion


http://www.dfat.gov.au/issues/measures-against-corruption.html
Click to expand...

what hypocrisy! what double standard!
Companies that improve Australia's foreign trade balance get penalised and their officers crucified, yet the same politicians that have legislated from a position on a moral high ground absolve themselves and their ilk when they rort the system, then come up with all kinds of lame excuses.
"Networking" at a wedding.
"Study crime fighting" on an Overseas family holiday.
etc...
 
Re: LEI - Leighton Holdings

McLovin said:
The fines at the top of the range (an unlikely outcome, IMO) would be $1.89billion
http://www.dfat.gov.au/issues/measures-against-corruption.html
Click to expand...

I guess it depends on the definition of "company concerned".

If they take 10% of turnover of LEI holdings that'd be a massive fine. If they take 10% of turnover of the subsidiary the broke the law - probably a lot less.

Either way, the investigation is not completed yet anyway.
 
Re: LEI - Leighton Holdings

skc said:
I guess it depends on the definition of "company concerned".

If they take 10% of turnover of LEI holdings that'd be a massive fine. If they take 10% of turnover of the subsidiary the broke the law - probably a lot less.

Either way, the investigation is not completed yet anyway.
Click to expand...

If the board of LEI knew of the corruption then you can guess who they'll be going for. I'm not sure if a foreign domiciled subsidiary can be fined by an Australian authority. Either way I'm sure they'll negotiate it.

Early days, but there is a trend emerging here with Australian companies paying bribes. If the RBA is doing it then who knows who else is!

If these allegations are true, then look out below...

Among the most explosive of the company files is a memo written on November 23, 2010, by then acting CEO David Stewart. It says Leighton International managing director David Savage had revealed he and Mr King knew of a $42 million kickback to a firm in Monaco nominated by Iraqi officials who gave Leighton a $750 million oil pipeline contract. "I asked did Wal K approve this? And he said yes," the memo says.
Click to expand...

Read more: http://www.smh.com.au/business/buil...tion-claims-20131002-2ut2e.html#ixzz2giY0qmRN

I do think this is bigger than just losing a few government contracts.:2twocents
 
Re: LEI - Leighton Holdings

McLovin said:
Early days, but there is a trend emerging here with Australian companies paying bribes. If the RBA is doing it then who knows who else is!
Click to expand...

Lol. What is RBA's annual turnover?

McLovin said:
If these allegations are true, then look out below...

I do think this is bigger than just losing a few government contracts.:2twocents
Click to expand...

Well judging by the lack of bounce in LEI's share price today it does seem that market is looking at it more seriously than I am.

I think LEI must have the ASX large cap record of dropping 10%+ bombshells in the last few years.
 
Re: LEI - Leighton Holdings

McLovin said:
The fines at the top of the range (an unlikely outcome, IMO) would be $1.89billion


http://www.dfat.gov.au/issues/measures-against-corruption.html
Click to expand...

The problem I have with the fines against the company is that the shareholders, who had nothing to do with the illegal activities, are the one who suffer. It should be more so the people who carried out or condoned the activities who should carry the burden in huge fines or jail terms. Not quite "off with their heads!!, but nearly.

This would be the best incentive for directors and senior people in all companies to ensure that their risk management and corporate governance was as good as it can be.

Cheers
Country Lad
 
Top