Australian (ASX) Stock Market Forum

ASZ - ASG Group

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Ves said:
There is no need to apologise. Often the importance of something is lost in the heat of the moment, especially when it is something that has only been theory until you do it for the first time in practice.
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You should feel good about closing a losing trade for the right reason. It's a relieve, it shows that you are disciplined and you can just move on. It's an important trait to be a successful trader/investor imho.

And in case people are wondering why trading/investing is competitive... this is a good example. Those who were able to read the report faster and accurately, and with the coviction to act straight away, got to sell their shares on open at 82c. These quicker operators used up the available bids, leaving those who hesitate to move their asking price down and down...some may still haven't sold 25% later.
 
skc said:
You should feel good about closing a losing trade for the right reason. It's a relieve, it shows that you are disciplined and you can just move on. It's an important trait to be a successful trader/investor imho.
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Certainly is a big weight off the shoulders... I am trying to think of an apt metaphor, but there is not much like the feeling. It's a feeling of closure, that brings a willingness to move on to the next lot of research.

And in case people are wondering why trading/investing is competitive... this is a good example. Those who were able to read the report faster and accurately, and with the coviction to act straight away, got to sell their shares on open at 82c. These quicker operators used up the available bids, leaving those who hesitate to move their asking price down and down...some may still haven't sold 25% later.
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Yes - if you have the experience to read the report quickly (knowing what you want to look for) and have full-time access to your screen, then you can certainly gain some edge on that alone. When I first looked it was already $0.76 or $0.77 and I noticed there was an announcement...
 
Boggo said:
Not quite what I said V...



meaning the stock as displayed on the associated weekly chart.

I am sitting in a hotel room at the moment with only 20 min delayed data but ASZ seems to be maintaining the down trend.
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Alright, misunderstood you - sorry about that. I think we've had the discussion about our different methods before. Obviously this one didn't work out on this occasion, so I got out.
 
Back from holidays in the Midwest: "Wildflower Country"! Seriously recommended as a destination for a break :)
A solid GXY trade provided most of the funds for accommodation and petrol.
Let's see if ASZ can finance the next trip: my scan suggests as much, and I hopped on board.
71c may offer some resistance, but more likely, serious targets are 77 and 88.
Stop on Close Below 64.

ASZ 01-10-12.gif
 
Ves said:
I am wondering whether they will need to tap the market for cash in the next 12 months?
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The answer turns out to be yes! Turns out they did run out of cash.

Raising capital at $0.52 by the looks of it.

Yet... just before they raised cash a takeover offer at $1.03 (highly conditional of course).

This management is unbelievable. It boggles my mind how you can raise cash at that sort of discount after a takeover offer (probably imaginary!) has been made at double that! I'm glad I got out when I did.
 
Ves said:
The answer turns out to be yes! Turns out they did run out of cash.

Raising capital at $0.52 by the looks of it.

Yet... just before they raised cash a takeover offer at $1.03 (highly conditional of course).

This management is unbelievable. It boggles my mind how you can raise cash at that sort of discount after a takeover offer (probably imaginary!) has been made at double that! I'm glad I got out when I did.
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That explains the shennanigans earlier this week with putting forward the dividend payment by seven days only to be told the ASX that they were too late, they must have been very low on cash. They really are a bunch of wombats running the shop.
 
McLovin said:
That explains the shennanigans earlier this week with putting forward the dividend payment by seven days only to be told the ASX that they were too late, they must have been very low on cash. They really are a bunch of wombats running the shop.
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Sorry how does moving the dividend a week earlier help with cash flow?
 
herzy said:
Sorry how does moving the dividend a week earlier help with cash flow?
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They actually tried to push it back and the ASX denied them this option because it was lodged too late.

Then, they raise capital... sounds like cash flow to me.
 
Ves said:
They actually tried to push it back and the ASX denied them this option because it was lodged too late.

Then, they raise capital... sounds like cash flow to me.
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Ok thanks - misunderstood your previous comment to mean bringing it forward
 
A couple of observations on that announcement.

The stationery truly sux.

"New World computing" is used six times. Meaningless IT hyperbole is the pits. They must be using the same spin doctor as Julia Gillard.
 
McLovin said:
More bad news...

$15m in writedowns...CFO gone...Still no big contract...In fact they don't even mention it anymore! I guess on the plus side, they reaffirmed guidance.

Glad I got out of this hound without too much damage.

http://www.asx.com.au/asxpdf/20130214/pdf/42d0lk0khmytkm.pdf
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Wasn't there a mention of potential transaction proposal? I was expecting it to run up from the open in this kind of market... but the IT sector hasn't really caught the bull run.
 
skc said:
Wasn't there a mention of potential transaction proposal? I was expecting it to run up from the open in this kind of market... but the IT sector hasn't really caught the bull run.
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Yeah there was. "further work has occurred". Makes you wonder how serious the bidder is.
 
Half year results are out. A clean up of the balance sheet with 15.6m of write-downs. It looks like the previous CFO was deferring booking expenses related to long term contacts and it looks like he has been shown the door.

They are hoping to be bought out. Share price down over 17% today on huge volume as I type. It's a stampede for the doors.
 
tinhat said:
Half year results are out. A clean up of the balance sheet with 15.6m of write-downs. It looks like the previous CFO was deferring booking expenses related to long term contacts and it looks like he has been shown the door.

They are hoping to be bought out. Share price down over 17% today on huge volume as I type. It's a stampede for the doors.
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Company has no cash, still plenty of capitalised assets on the balance sheet (~$16m in capitalised costs) and $85m in goodwill... in technical breach of debt (albeit waived after the balance date). If "balance sheet strength" is a criteria to winning large contracts, they'd never win one.

If it wasn't for the dangle of potential suitors it would be an even more substantial fall.

They might need a cap raising again... but it hasn't been that long since the last one at 52c in Oct, I hate to think what price they can get away with this time.
 
Not sure if the price per share on offer was touted before, but it was announced as indicative at 68c from a non binding and conditional proposal from a significant participant in IT services. Jumped the price from Fridays close at 42c to end the day at 49.5c. :) I am happy with that. I managed to pick up a few at 35c which bought my average down to 44.2c.
Is there more room for the price to move? Apparently there are other potential acquisition parties in discussions also.
Worth watching.

jb
 
At last some good news from this company. $25 million contract signed and $60 million waiting in the wings. Apparently in their New World (i think based on cloud computing) services. Lets hope for the company and holders sake their price returns to the clouds too.

Pleased to hear the news is based on business success. There is also apparently some good indications of re-signings of the existing customer base, and some management of their debt.

Worth watching to see if it is turning the corner. Be a good effort in this current climate.
 
ASZ giving holders the old **** sandwich today -
Start out nicely with
1st.JPG
Here comes the real reason for the announcement -
2nd.JPG
Finish strong!
3rd.JPG
 

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