CSR - CSR Limited

[noirua]

Ethanol is strongly in the news in the States as supplies dwindle and they look to other countries to help back up supplies while 15 new plants are built. Ethanol prices have spiked.

CSR are moving strongly into the bioethanol market.

 

[Fab]

After losing some ground in the last few weeks. I guess you are right Noirua Ethanol interest is getting some more coverage as oil price remains strong and appears like they are not going to fall tomorrow. In the last couple of days CSR closed above the $4 and is currently trading above the $4.15. This is a very good sign as well as Full year result due on the 15/05 which I reckon will be very positive. Keep an eye on CSR I reckon.

 

[noirua]

After losing some ground in the last few weeks. I guess you are right Noirua Ethanol interest is getting some more coverage as oil price remains strong and appears like they are not going to fall tomorrow. In the last couple of days CSR closed above the $4 and is currently trading above the $4.15. This is a very good sign as well as Full year result due on the 15/05 which I reckon will be very positive. Keep an eye on CSR I reckon.

Yes, I have to agree that ethanol may move this stock on strongly and the $5 level may yet be reached long before the end of 2006.

 

[Fab]

Yep that is why I am holding too and the annual result are coming on the 17/05. It closed today above 4.20 which is very good uptrend sign

 

[noirua]

Flex-Fuel cars do appear to be the answer and the way ahead for CSR:

http://www.abcnews.go.com/WNT/story?id=1938027&page=1

http://www.msnbc.msn.com/id/5829046

 

[noirua]

Barclays Group ( through BGIA ) have increased their holding in CSR from 8.25% to 9.45%.

 

[Fab]

Thanks Noirua. I believe this makes sense what is happening in Brazil and if Ethanol is so price effective and environmentally friendly why not do it in Australia as well. Good thing for sure for the share price of CSR if we are going to go that way. Now that raise the question are they any small caps involved in Ethanol production or research are these shares are likely to go up as well.

 

[noirua]

http://www.msnbc.msn.com/id/12754620/from/RS5/

 

[Fab]

CSR is annoucing its annual report tomorrow , I am expecting a good result and a strong gain (hopefully)

 

[noirua]

CSR is annoucing its annual report tomorrow , I am expecting a good result and a strong gain (hopefully)

The Annual Report should be very good. I'm not quite sure what the market is expecting though.

 

[noirua]

Preliminary Final Report: http://www.asx.com.au/asxpdf/20060517/pdf/3ws73vrp71v94.pdf

 

[noirua]

Added some CSR to my holding this morning, looking good after recent falls.

 

[michael_selway]

Added some CSR to my holding this morning, looking good after recent falls.

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 27.4 29.5 32.0 31.9
DPS 15.0 16.0 17.0 18.0

EPS(c) PE Growth
Year Ending 30-03-07 29.5 12.3 7.7%
Year Ending 30-03-08 32.0 11.3 8.5%

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=63A67789-3048-5296-A2221B0A43B65722

Nothing new under the sun here as Vicky has been making this call for a few months now.

But signs she's correct in this view are increasing. The main supporting argument to her view is the continued growth of Chinese alumina production, up 51% year on year according to the latest data.

This rapid growth in production has begun to be felt in the aluminium sector, with even stronger aluminium production figures expected from China over the next few months,Vicky says.

While some are of the view that this is a one-off situation, Merrill Lynch couldn't disagree more, predicting that its supply side forecasts for the current year will be beaten, implying spot prices will come under pressure as the year progresses.

She predicts there will be a 3-6 month lag before Chinese aluminium exports increase, with resulting pressure on prices.

 

[Fab]

CSR is holding well today in good volume. Look out when the market sentiment changes

 

[noirua]

I intend to top up again this morning in CSR shares as they have slipped to $3.58. Hopefully the expansion by CSR will be shown to be as good as the three companies below.

New York has flared up again in the ETHANOL sector as Hawkeye Holdings files to raise US$350 million for development. This marks the third deal in the sector after Verasun and Aventine Renewable Energy. A third ethanol plant will be opened in 2006 and a fourth in 2007; Hawkeye buys corn and converts this to Ethanol.

Link at: http://www.marketwatch.com/News/Story/G9DBGlVFH1RJm24ssxFs1sB?siteid=mktw&dist=TNMostMailed

 

[michael_selway]

I intend to top up again this morning in CSR shares as they have slipped to $3.58. Hopefully the expansion by CSR will be shown to be as good as the three companies below.

New York has flared up again in the ETHANOL sector as Hawkeye Holdings files to raise US$350 million for development. This marks the third deal in the sector after Verasun and Aventine Renewable Energy. A third ethanol plant will be opened in 2006 and a fourth in 2007; Hawkeye buys corn and converts this to Ethanol.

Link at: http://www.marketwatch.com/News/Story/G9DBGlVFH1RJm24ssxFs1sB?siteid=mktw&dist=TNMostMailed

Yeah its approaching fair value (forward PE of 10 or 10% return pa)

CSR - Earnings and Dividends Forecast (cents per share)
... 2006 2007 2008 2009
EPS 27.4 29.8 32.8 33.5
DPS 15.0 17.0 18.0 19.7

thx

MS

 

[Fab]

High volume today on CSR sounds like a lot of people might think this stock has become a bargain. :

 

[mista200]

Yep gonna top up tommorow!

 

[noirua]

Merrill Lynch upgraded CSR Limited to Buy in early May at $3.87. ML were impressed by the raising of the 2007 profits forecast to $292 million from $258 million.

Http://www.mysharetrading.com/2006/05/04/merrill-lynch-csr-ltd-csr-recommendation.htm

 

[michael_selway]

Merrill Lynch upgraded CSR Limited to Buy in early May at $3.87. ML were impressed by the raising of the 2007 profits forecast to $292 million from $258 million.

Http://www.mysharetrading.com/2006/05/04/merrill-lynch-csr-ltd-csr-recommendation.htm

yeah, theres about 912.29 million CSr shares, so;

3.87/912.29 = 0.32 = 32 EPS

current consesnsus is 29 EPS for 2007 ist only 10% improvement but not much. Also look at 2008/2009 very little growth left? what did ML say about 2008/2009 profit forecast?

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 27.4 29.8 32.8 33.5
DPS 15.0 17.0 18.0 19.7

EPS(c) PE Growth
Year Ending 30-03-07 29.8 12.0 8.8%
Year Ending 30-03-08 32.8 10.9 10.1%

thx

MS