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ASG with a decade of earnings growth, together with three acquisitions last year, has developed into a national company.
Flagging solid growth for 2011, and paying a solid dividend from an ROE of around 14%,
a recent capital raising at $1.20 to consolidate the business in Perth was fully subscribed.
A DCF calculation came up with a value of $1.36 to $1.40.
Price chart shows a move up from a years low to $1.175, consolidation, a further move up then a dip to offer a buying opportunity around the $1.20 level IMO.
Not holding any, but will buy in tomorrow.
Interested in any comments
........May be an opportunity to buy.
I've been holding for quite some time. Got in in the low 80s. I have been watching every now and then on Commsec, and the buyer's seem to be lining up. The share price didnt even decrease after the recent dividend. Someone obviously knows something. I am still worried about the buy-out payment they need to fund come 2013. Interesting to see how dillutive it will be (maybe not at all if they win a big contract).What's going on with ASZ? I picked up a bit a few weeks ago, I had been looking at it for ages, and now it's taken off. I'm thinking there could be a contract announcement on the way.
What's going on with ASZ? I picked up a bit a few weeks ago, I had been looking at it for ages, and now it's taken off. I'm thinking there could be a contract announcement on the way.
If the market jitter continues a major contract win will probably be considered bad news... given that they've never done a 9-digit contract before.
Gees...Feeling a little glass half empty today?
I'm hanging in there, I basically wanted some exposure to IT services and cloud computing. If ASZ can capitalise with some big contract wins then that's the icing on the cake, otherwise over the next 5 years the market will keep growing. Smallish investment because even after quite a bit of research, I'm still struggling to split them all.
Poor result today.
EPS down about 8.8% and I believe the fact that they paid less deferred acquisition expenses masks the fact that this could have been even uglier.
The cash balance went from about $13 mil twelve months ago to an overdraft of $4.5 million. Management would have shareholders believe that this is due to the fact that they have bought forward a lot of investment decisions (it looks like there is definitely capex of some sort). The problem is, they are borrowing to pay dividends at the same time!
I am surprised that the market did not whack this one further today.
Once I get my head clear and have a closer look at the report it is most likely that I will exit this position at a small loss (depending on whether the price finds a floor before then or not...).
I don't have any particular faith in management at the moment. The whole "we are shooting for big contracts" (this time it is $600 mil!!) mantra and the fact that they did not flag this result in the lead up to reporting season being the reasons. Lots of spin in the investor preso.
Technical buy at .70c
Stop .66
Like the low risk
Shackeout of weak hands.
Looking initially at 85c on the up side.
Will post a chart with analysis when I have more time.
There are plenty of others, briefly:I got out of this yesterday for much the same reasons as you describe. Way too much fluff in the report. And they have been saying for the last ~18 months that they are trying to win large contracts but then in this report that changed to "now we have everything in place to start winning large contracts".
There are plenty of others, briefly:
The "normalised" EBITDA, they mentioned something to do with "opportunity costs" - no one ever does that, it's meaningless
I am wondering whether they will need to tap the market for cash in the next 12 months?
There's probably none in reality - negative net tangible assets! Such poor disregard for their balance sheet IMO.There's not much fat on this company left.
Definitely should have gone with my gut feel and sold yesterday. I agree with tech/a in terms of it finding support at $0.70. Doesn't help me much though!
There's probably none in reality - negative net tangible assets! Such poor disregard for their balance sheet IMO.
Surely the big drop was fundamental? Profit decrease, lack of sales, reduced dividend etc.
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