CXG - Coote Industrial

[robert toms]

Yes I bought a few more yesterday at $1.21.5 ,my first buy at $1.95 is still well under water ...but hope springs eternal.Their announcement looked good....but if you have read it,is this one of the most diverse industrials around?
It bamboozled me with details of their scope!

 

[Miner]

Bell Potter has initiated coverage on CXG now with a buy
Word of caution on BPS - they were the lead manager for BYL.,

They ramped up the BYL to the clients and still maintaining neutral. They did the same when it was 55 cents and then telling the same story at 30 cents

Why I told the above please DYOR before relying on BPS recommendation alone.

However this report has some substantial information and you may like to read if not got already

 

[boiler]

Caterpillar Announces Acquisition of Leading Brazilian Locomotive Component and Transit Car Services Company

MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of Caterpillar's Progress Rail Services Division

PEORIA, Ill., June 24 /PRNewswire-FirstCall/ -- Caterpillar Inc. , has reached an agreement to acquire all of the capital stock of MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE). Based in Diadema and Hortolandia -- in Sao Paulo State, Brazil, MGE is a manufacturer and reconditioner of traction motors, main and auxiliary generators, control equipment and auxiliary components for locomotives and transit cars. In addition, MGE maintains, modernizes and rebuilds transit cars and locomotives. Customers include various transit authorities and railroads in South America. MGE is a market leader in the Brazilian market for the products and services it provides and is recognized for its quality and customer satisfaction. MGE will become part of Caterpillar's Progress Rail Services Division (Progress Rail).

"The acquisition of MGE represents an important step in Progress Rail's international growth strategy," said Billy Ainsworth, Caterpillar vice president with responsibility for Progress Rail. "We welcome the management and employees of MGE to Progress Rail and Team Caterpillar and look forward to serving MGE's existing customers as well as providing products and services to the rapidly growing rail and transit industry in South America."

Progress Rail is one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America. These products and services include various types of rolling stock and track infrastructure. Headquartered in Albertville, Alabama, Progress Rail operates in more than 110 locations with 4,625 employees in the United States, Canada and Mexico. The acquisition of MGE is the first business expansion for Progress Rail outside of North America.

"The continued growth of our service businesses is an important part of Caterpillar's Vision 2020 strategy, and the acquisition of MGE is a logical first step as Progress Rail expands its proven and successful business model outside of the North American market," said Steve Wunning, Caterpillar Group President.

Progress Rail and MGE see important synergies leveraging Progress Rail's extensive range of products and services, MGE's relationships with the Brazilian railroads and transit systems, and Caterpillar's relationships with Brazilian mining and construction industries. Caterpillar has had a presence in Brazil since 1954 and continues to invest in its Brazilian operations. Caterpillar's primary administrative and operational activities are located in the city of Piracicaba, State of Sao Paulo. In addition, Caterpillar and its independent dealer network in Brazil service and support an extensive range of construction and mining equipment operating in Brazil's large and growing mining and construction industries.

Ronaldo H. Moriyama and Carlos A.A. Roso, who were principal MGE shareholders, will continue to serve as co-managing directors reporting to Billy Ainsworth as part of Progress Rail.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com/.

 

[michael_selway]

Caterpillar Announces Acquisition of Leading Brazilian Locomotive Component and Transit Car Services Company

MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of Caterpillar's Progress Rail Services Division

PEORIA, Ill., June 24 /PRNewswire-FirstCall/ -- Caterpillar Inc. , has reached an agreement to acquire all of the capital stock of MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE). Based in Diadema and Hortolandia -- in Sao Paulo State, Brazil, MGE is a manufacturer and reconditioner of traction motors, main and auxiliary generators, control equipment and auxiliary components for locomotives and transit cars. In addition, MGE maintains, modernizes and rebuilds transit cars and locomotives. Customers include various transit authorities and railroads in South America. MGE is a market leader in the Brazilian market for the products and services it provides and is recognized for its quality and customer satisfaction. MGE will become part of Caterpillar's Progress Rail Services Division (Progress Rail).

"The acquisition of MGE represents an important step in Progress Rail's international growth strategy," said Billy Ainsworth, Caterpillar vice president with responsibility for Progress Rail. "We welcome the management and employees of MGE to Progress Rail and Team Caterpillar and look forward to serving MGE's existing customers as well as providing products and services to the rapidly growing rail and transit industry in South America."

Progress Rail is one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America. These products and services include various types of rolling stock and track infrastructure. Headquartered in Albertville, Alabama, Progress Rail operates in more than 110 locations with 4,625 employees in the United States, Canada and Mexico. The acquisition of MGE is the first business expansion for Progress Rail outside of North America.

"The continued growth of our service businesses is an important part of Caterpillar's Vision 2020 strategy, and the acquisition of MGE is a logical first step as Progress Rail expands its proven and successful business model outside of the North American market," said Steve Wunning, Caterpillar Group President.

Progress Rail and MGE see important synergies leveraging Progress Rail's extensive range of products and services, MGE's relationships with the Brazilian railroads and transit systems, and Caterpillar's relationships with Brazilian mining and construction industries. Caterpillar has had a presence in Brazil since 1954 and continues to invest in its Brazilian operations. Caterpillar's primary administrative and operational activities are located in the city of Piracicaba, State of Sao Paulo. In addition, Caterpillar and its independent dealer network in Brazil service and support an extensive range of construction and mining equipment operating in Brazil's large and growing mining and construction industries.

Ronaldo H. Moriyama and Carlos A.A. Roso, who were principal MGE shareholders, will continue to serve as co-managing directors reporting to Billy Ainsworth as part of Progress Rail.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com/.

Hm how positive do you think this might be?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 17.2 21.4 22.9 24.5
DPS 5.9 11.5 13.4 14.1


thx

MS

 

[boiler]

Hm how positive do you think this might be?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 17.2 21.4 22.9 24.5
DPS 5.9 11.5 13.4 14.1


thx

MS

Caterpillar acquired Progress Rail Services for $1.0 billion in cash, stock and assumption of debt in 2005. Alliances sometimes end up as aquisitions down the track, (not too soon i hope). Cats a big company its looks positive either way to me.

 

[Trader Paul]

Hi folks,

CXG ... expecting some positive news this week, around 30072008,
as 2 positive time cycles come together ...

have a great weekend

paul



=====

 

[Pioupiou]

I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason. Results for 08 were published on Friday, and EPS was 21 cents. The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling. I have too many to consider buying more - you know the logic - spread the risk.

The nexus between CXG and Caterpillar's Progress Rail is intereting. Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come. See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb.

Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG. I have selected a PER of 10, whereas it is now has a PER of 6.

 

[michael_selway]

I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason. Results for 08 were published on Friday, and EPS was 21 cents. The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling. I have too many to consider buying more - you know the logic - spread the risk.

The nexus between CXG and Caterpillar's Progress Rail is intereting. Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come. See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb.

Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG. I have selected a PER of 10, whereas it is now has a PER of 6.

Hi yeah, coudl be interesting, have to wait and see

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 20.6 22.9 24.5 --
DPS 8.5 13.4 14.1 --

thx

MS

 

[boiler]

I bought 34,400 CXG in early 2008 at $1.16, because the numbers looked good, and another 17,000 on Monday, 1/9/2008, for the same reason. Results for 08 were published on Friday, and EPS was 21 cents. The price at COB today (Tuesday, 2/9/08) was $1.25, so I am ahead, but I think the SP has a long upward path yet, so I am not selling. I have too many to consider buying more - you know the logic - spread the risk.

The nexus between CXG and Caterpillar's Progress Rail is intereting. Caterpillar recently acquired a Brazillian company that has some of the hallmarks of CXG, so that could be a play repeated in Australia in years to come. See www.cat.com/cda/components/fullArticle?m=38622&x=7&id=912675 for the blurb.

Choose an apt PER for CXG, and multiply it by 21 cents, and you will get your target price for CXG. I have selected a PER of 10, whereas it is now has a PER of 6.

Well done Pioupiou, i also bought a further 20000 at $1.15 on Monday total 60000.Have been waiting for this report all month, nice result. I think Chinas economy is the key for this one. Its not doing so well at the moment but chinese government is loaded with cash. cxg share price is discounted compared to its peers thanks to its debt, but its potential is interesting to say the least. Check out their new web site http://www.coote.com.au/ Good luck

 

[boiler]

Gemco on track for growth - WA Business News28 Aug 2008 ... WA Business News understands Gemco Rail is in talks with Oakajee Port and Rail Pty Ltd to be involved in the development of the $2 billion ...

Does anyone have access to the complete article? Sounds interesting.

 

[arae]

This one still seems to be flying under the radar as a great value stock.

Let's consider the following;

* Annual report announced 191% increase in profit
* Revenue increase of 400%
* EPS increase of 20% to 21c
* Dividend increase to 8.5c
* FY09 guidance with net profit after tax target of $25m, up 14% from FY08

Given the current price of $1.015 that gives a PE of 4.68. Additonally the dividend (ex dividend date in less than 2 weeks) pays about 8.5%

Around $1 also provides a strong base since its float.

Keeping in mind it's a lightly traded stock and the owner, Michael Coote owns over 1/3 of the issued shares. So it's nice knowing his interests and the shareholders are closely aligned.

 

[Family_Guy]

Whats doing with this stock? 26c atm. I can't see any issues. Among other things, EPS is nice, PE is ultra low at 1.3 and i just can't seem to find a reason not to buy it.....am i blind?
Any idea of why this is trading so so low, like 90% on yr high?

 

[robert toms]

I hold as well and hope that their financing issued get resolved soon.
In last years annual report they revealed that had quite a bit of debt but believed that they could pay it reasonably quickly into this financial year.
Coote came up with a plan to sell 12 of their locomotives to a private unlisted company...and then lease them back.
The private company has trouble raising $80 million from the banks...I believe that this has not yet been resolved.Hence the uncertainty and the low share price.
I optimistically wait for a positive market announcement ...but it drags on

 

[michael_selway]

I hold as well and hope that their financing issued get resolved soon.
In last years annual report they revealed that had quite a bit of debt but believed that they could pay it reasonably quickly into this financial year.
Coote came up with a plan to sell 12 of their locomotives to a private unlisted company...and then lease them back.
The private company has trouble raising $80 million from the banks...I believe that this has not yet been resolved.Hence the uncertainty and the low share price.
I optimistically wait for a positive market announcement ...but it drags on

Hm yeah debt is any issue for those who have ti in this environment

I wish they had more disclosure about this

thx

MS

 

[boiler]

Sold out over a month ago ,fundamentals have changed too much risk involved, Goodluck to holders....

 

[dbcok]

The announcement was worse than expected ,with Coote making a loss.
Too much debt and failed purchasing decisions,The outlook did not give any encouragement for an an early turnaround.
Only two years they raised capital at $2.40 a share...the glory days are gone.

 

[jbocker]

I have bailed out of this stock - someone told me if you cannot understand the business then get out.
The 'Not Fair but Reasonable' quote by the independent expert was enough for me. I kept reading the report but can only could see Elph having Coote over a barrel, with its heavily discounted capital raising deal.
This all originated with Elph helping out with the Cootes and Greentrains deal. All a bit too messy (Greentrains being partly owned by Cootes parents, must have made interesting dinner table discussions).

Arghh go read the report. Hope they get it all sorted.
Dont take my advice on this stock - when I say I cannot understand the business - that applies to most stock!

 

[dbcok]

I have bailed out of this stock - someone told me if you cannot understand the business then get out.
The 'Not Fair but Reasonable' quote by the independent expert was enough for me. I kept reading the report but can only could see Elph having Coote over a barrel, with its heavily discounted capital raising deal.
This all originated with Elph helping out with the Cootes and Greentrains deal. All a bit too messy (Greentrains being partly owned by Cootes parents, must have made interesting dinner table discussions).

Arghh go read the report. Hope they get it all sorted.
Dont take my advice on this stock - when I say I cannot understand the business - that applies to most stock!

I came to the same understanding after reading the report-the Cootes parents being involved in Greentrains was interesting,seems like Greentrains was a purpose-formed company.