AWS - Australian Waterwise

[canny]

AWS has just had 3 days of significantly increased price and volume.
I am unable to post a chart - so you will have to look at your own programmes.
They are a retail chain - Hugall & Hoile in Western Australia. They currently have 16 retail stores and another one about to open.
It seems possible that the recent refurbishments have created a 'rather large' rise in profits, which will reflect in the quarterly and explain this recent surge in price.
Trading currently at 4c - it's worth a look.
I think of places like JB HiFi etc - who started somewhere low and have grown dramatically.
Westpac has refinanced AWS recently to help their growth campaign. Every chance they will decide to go National in the future.

They Are Australian Waterwise - and deal in irrigation, bores and retail water items - with a website showing their drought friendly advice.

Their options, AWSO, have a 3c conversion in March 2008 - and the stock seems to be fairly tightly held. Very few options available at this stage.

Good for the watchlist to see if it continues upwards again tomorrow.

 

[watsonc]

Re: AWS -Australian Waterwise

I see the potential with the drought worsening! My father works for Water Dynamics, its an irrigation/water solutions type business with numerous stores across NSW. I'll ask him what he thinks about AWS potential.

 

[canny]

Thanks watson.
Any info appreciated.
It's gone backwards today - but a LOT of big buying took place during the day - so it appears some people are still 'getting set'.
I really like hte story - and apparently their quarterly is going to show a large increase in profit. Buys have been withdrawn from option traders, but that means nothing to me at this stage.
My chart says if it holds above .033 it's safe at the moment.

Mate in WA says the stores are 'everywhere' so that's an opinion from a local - yet there are only 16 stores, so obviously well placed!!

 

[canny]

Ann just out:Nice! - re opens 4.10opm on match out.

AUSTRALIAN WATERWISE SOLUTIONS Ltd
ABN 16 082 341 197
U6/9 Stanford Way, Malaga Western Australia 6090
PO Box 2129, Malaga 6944 Phone: (08) 9249 4666 Fax: (08) 9249 7879 Email: info@hugall.com.au Website: www.hugall.com.au
11 January 2007
Company Announcements Office
Australian Stock Exchange
10th Floor
20 Bond Street
Sydney NSW 2000
Australian Waterwise Solutions Ltd
Sales Update – New and Refurbished Hugall & Hoile Stores
The Company has currently completed the refurbishment of two stores (being Subiaco
and Malaga), and the relocation of one new store (being Balcatta).
The Directors are pleased to announce the following percentage increases in actual
sales from these stores since their refurbishment or relocation as compared to
corresponding actual sales for the same periods last year:
Malaga (from September 06) 50.82% up
Subiaco (from November 06) 38.89% up
Balcatta (December 06) 39.14% up
In addition to the above stores, the Company is currently relocating it’s Claremont
store to larger premises. This store will open for trading in February 2007.
The Company has also secured leasehold premises for the following new stores:
Cannington (Perth)
Mindarie (Perth)
Busselton (South West Western Australia).
Any questions relating to this announcement should be directed to the Executive
Chairman, Joe Ferrone on 0412 853 975.
Yours faithfully,
Joe Ferrone
Executive Chairman
Australian Waterwise Solutions Ltd
11 January 2007
Company Announcements Office
Australian Stock Exchange
10th Floor
20 Bond Street
Sydney NSW 2000
Australian Waterwise Solutions Ltd
Sales Update – New and Refurbished Hugall & Hoile Stores
The Company has currently completed the refurbishment of two stores (being Subiaco
and Malaga), and the relocation of one new store (being Balcatta).
The Directors are pleased to announce the following percentage increases in actual
sales from these stores since their refurbishment or relocation as compared to
corresponding actual sales for the same periods last year:
Malaga (from September 06) 50.82% up
Subiaco (from November 06) 38.89% up
Balcatta (December 06) 39.14% up
In addition to the above stores, the Company is currently relocating it’s Claremont
store to larger premises. This store will open for trading in February 2007.
The Company has also secured leasehold premises for the following new stores:
Cannington (Perth)
Mindarie (Perth)
Busselton (South West Western Australia).
Any questions relating to this announcement should be directed to the Executive
Chairman, Joe Ferrone on 0412 853 975.
Yours faithfully,
Joe Ferrone
Executive Chairman
Australian Waterwise Solutions Ltd
11 January 2007
Company Announcements Office
Australian Stock Exchange
10th Floor
20 Bond Street
Sydney NSW 2000
Australian Waterwise Solutions Ltd
Sales Update – New and Refurbished Hugall & Hoile Stores
The Company has currently completed the refurbishment of two stores (being Subiaco
and Malaga), and the relocation of one new store (being Balcatta).
The Directors are pleased to announce the following percentage increases in actual
sales from these stores since their refurbishment or relocation as compared to
corresponding actual sales for the same periods last year:
Malaga (from September 06) 50.82% up
Subiaco (from November 06) 38.89% up
Balcatta (December 06) 39.14% up
In addition to the above stores, the Company is currently relocating it’s Claremont
store to larger premises. This store will open for trading in February 2007.
The Company has also secured leasehold premises for the following new stores:
Cannington (Perth)
Mindarie (Perth)
Busselton (South West Western Australia).
Any questions relating to this announcement should be directed to the Executive
Chairman, Joe Ferrone on 0412 853 975.
Yours faithfully,
Joe Ferrone
Executive Chairman
Australian Waterwise Solutions Ltd

 

[exberliner1]

Forward pe is in single figures atm....if those profit projections are correct the pe will fall further...

What's a good pe ratio for a stock with rising sales and a working business model??

Nearer 20 I would have thought.

Purely on the basics of the pe ratio we shoul see a fairly speedy rise to around 10c imo ...currently 4c...even at 10c it represents good value...

Notice on the charts as well .... volume up from a few million a day to 20mn+ shares traded per day..

I have a few options and heads bought nicely below 4.

It is woerh keeping this on watchlist and buying below 4 if you get the chance... it won't be there for long....the pe ratio should see to that.

EB

 

[pch]

For some weird reason I do a lot of retic work for friends and help them on bore/pump related matters, though it has utterly nothing to do with my career. Hugals has always been uncompetitive both for retic parts but also services (like reboring). When competing with the likes of Bunnings its little wonder.

The story may be different in other states..

In that way they are a little like Cool or Cozy who have also struggled in recent times despite the market for air-con and insulation being better than ever (ie its now mandated by legislation for new homes in some states). The bigger market means more competitors and reduced margins.

Note the financials:

The Directors of Australian Waterwise Solutions Limited disclose that at 30 June 2006 and as of the date of the financial report, the Company is in breach of a number of it's bankers covenants. The bank has indicated that it is prepared to continue to support the Company by extending the core facilities and other facilities on the basis that the Company reduces total outstandings in relation to the core facilities to a maximum of $9.679 million by 20 October 2006 and a maximum of $6.029 million by no later than 31 December 2006. This support is also conditional upon the Company complying with specific financial reporting and financial performance covenants as required by it's bankers. The Company plans to satisfy these requirements by means of a combination of additional capital raisings, external borrowings and profits from trading activities.

If however the requirements of the bank are not met and the bank withdraws it's support, all debts and liabilities owing to the bank will become fully due nd payable. If this were to occur, there is significant uncertainty whether Australian Waterwise Solutions Limited will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts stated in the financial report.

They have since announced a refinance that will settle in late feb and the rights issue that gave them a couple million. They had 9mil of interest bearing liabilities that they are obviously working hard to refinance and turn into non current again

Its great news if they stick to their revised targets, but I wouldn't say its a compelling story..

 

[dhukka]

Forward pe is in single figures atm....if those profit projections are correct the pe will fall further...

Profit projections? Are you referring to management's EBITDA projection of $2.92m for FY07? From the last set of financial statements the company has about $1m in borrowing costs per year and the same with depreciation (which I assume will increase with store openings and refurbishments) That brings them down to NPAT of at best $0.9m but could be more like $0.5m. Let's assume no tax because of prior year's losses. On a profit of $0.9m that would be a p/e of 5.5x based on current prices. On $0.5m a p/e of 9.8x.

What's a good pe ratio for a stock with rising sales and a working business model? Nearer 20 I would have thought.

The company is on the verge of being wound up so on the basis of some increased sales numbers I wouldn't be calling it a working business model. In fact this company has had decreasing or flat sales for 5 years running. IMO given it's small size and management's poor record it's fairly priced at around 4c.

 

[dhukka]

Profit projections? Are you referring to management's EBITDA projection of $2.92m for FY07? From the last set of financial statements the company has about $1m in borrowing costs per year and the same with depreciation (which I assume will increase with store openings and refurbishments) That brings them down to NPAT of at best $0.9m but could be more like $0.5m. Let's assume no tax because of prior year's losses. On a profit of $0.9m that would be a p/e of 5.5x based on current prices. On $0.5m a p/e of 9.8x.





The company is on the verge of being wound up so on the basis of some increased sales numbers I wouldn't be calling it a working business model. In fact this company has had decreasing or flat sales for 5 years running. IMO given it's small size and management's poor record it's fairly priced at around 4c.

Sorry didn't see the company's forcast earnings.Management's forecast for FY07 is NPAT of $0.932m That would be a p/e of 5.3x based on current prices. Compare it with a company such as Radio Rentals (RRA) - strong record of increased sales and profitability. Forecasting a 14% sales increase for FY07, mkt cap 95.5m (AWS 4.9m) forecast EBIT 12.07m, EBIT margin 12.1% (AWS EBIT 1.92m, EBIT margin 4.1%) RRA forecast NPAT $7.96m, eps 6.25c, p/e 12x, (AWS NPAT $0.932m eps 0.7c p/e 5.3x) . Compared to a much larger company with a much more stable record of sales and earnings growth trading on a p/e of 12x AWS trading at anything above a p/e of 10x FY07 earnings would be generous. That would imply a sp of about 7c. Not bad upside from current levels but I still see a lot of risk attached to this one given management's track record.

 

[canny]

Sorry didn't see the company's forcast earnings.Management's forecast for FY07 is NPAT of $0.932m That would be a p/e of 5.3x based on current prices. Compare it with a company such as Radio Rentals (RRA) - strong record of increased sales and profitability. Forecasting a 14% sales increase for FY07, mkt cap 95.5m (AWS 4.9m) forecast EBIT 12.07m, EBIT margin 12.1% (AWS EBIT 1.92m, EBIT margin 4.1%) RRA forecast NPAT $7.96m, eps 6.25c, p/e 12x, (AWS NPAT $0.932m eps 0.7c p/e 5.3x) . Compared to a much larger company with a much more stable record of sales and earnings growth trading on a p/e of 12x AWS trading at anything above a p/e of 10x FY07 earnings would be generous. That would imply a sp of about 7c. Not bad upside from current levels but I still see a lot of risk attached to this one given management's track record.

New appointment of Mark Armitage on 312st December as MD should be part of hte shot in the arm, that satisfies your concerns on old management Dhukka.
Ex Bunnings - lots of flair and talent to bring in.

Refinancing is also being sorted out - and with such a bright future, you would imagine the banks would be falling over each other for the business.

The strong finish on Friday suggests a positive market is with them - and we look forward to some neat figures on the quarterly to show profit rises are still positive.

31 December 2006
Company Announcements Office
Australian Stock Exchange
10th Floor
20 Bond Street
Sydney NSW 2000
Australian Waterwise Solutions Ltd – Appointment of Mark Armitage as Managing Director
The Directors of Australian Waterwise Solutions Ltd (“AWS”) are pleased to announce the appointment of Mark Armitage as Managing Director, effective from 31 December 2006.
Mark has been instrumental in conceiving and implementing the Company’s national retail strategy which includes the introduction of a new and refreshed Hugall & Hoile brand to be applied to all stores Australia wide; and the ongoing refurbishment of all existing stores, along with the roll out of new stores.
Any questions relating to this announcement should be directed to Executive Chairman, Joe Ferrone on 0412 853 975.
Joe Ferrone
Executive Chairman
P.O. Box 2129, Malaga WA 6944 - Unit 6/9 Stanford Way, Malaga WA 6090. Telephone: (08) 9249 4666 Facsimile: (08) 9249 7879 Internet: www.hugall.com.au Email: info@hugall.com.au
Australian Waterwise Solutions Ltd
ABN 16 082 341 197

 

[canny]

Ferrone has gone from 'old management' and the price has dropped!

Need a settling in period and some very good profit projections to get it back on track imo.

 

[wizz]

About time we got an update on the suspension - every day without one seems bad news to me - I hopped in for a quick ride and now I'm stuck

Hopefully it'll double on reopening

 

[Fleeta]

F*CK me, what a basket case. Boy am I glad I got out in early Jan 07 and at least got something back.....lesson to learn boys and girls - never trust management, they will always lie, look to fundamentals - this company was always going to struggle in the current climate. A placement at 1c will surely ruin the share price when it re-opens.

 

[norip_zxy]

omg

anyone hold AWS?

it that possible for AWS to reopen?

its really bad luck for me

 

[petee]

omg

anyone hold AWS?

it that possible for AWS to reopen?

its really bad luck for me

yea think it will trade again once administrators work out a deal with banks and creditors...the stores seem to be good businesses and according to the report in WA newspaper today there is plenty of interest in the business...cheers and good luck