Australian (ASX) Stock Market Forum

FGE - Forge Group

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robusta said:
Yep starting to wonder at what point I would consider taking more profits. This business could follow in the footsteps of MND and grow well into the future.:2twocents
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I know what you mean. I am holding 30,000 Forge with an average buy in price of just over 3 dollars. I didnt sell last time they went to 6.70 odd but this time I think i will sell at least half.
 
the most undervalued stock on the market. $150m cash, low or no debt, business making $100m profit, and the company has a 500m cap at 5.80 a share? Its certainly odd. Dividend pay out is poor, surely thats not the reason? Newscorp is much worse and it is rated properly by the market?
 
adds4 said:
the most undervalued stock on the market. $150m cash, low or no debt, business making $100m profit, and the company has a 500m cap at 5.80 a share? Its certainly odd. Dividend pay out is poor, surely thats not the reason? Newscorp is much worse and it is rated properly by the market?
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As SKC has said in numerous threads recently, the market is current very forward looking and is disregarding current earnings... The future for mining services are seen as very risky.

That said I think FGE is one of the better ones and will probably continue to perform well...:2twocents
 
VSntchr said:
As SKC has said in numerous threads recently, the market is current very forward looking and is disregarding current earnings... The future for mining services are seen as very risky.

That said I think FGE is one of the better ones and will probably continue to perform well...:2twocents
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According to the SMH/Age markets live blog they are reporting today. Will be interesting to see the results. The share price has had a great run but looking at the weekly chart it made a lower high and a lower low over 2012.
 
going to be another cracking result on monday. I bet fge will achieve the high estimate of its profit forcast. Fge always surpises on the upside. Stella result will propel the shares towards $10 by years end. For me the big driver of share price performance will be the dividend payment. Fge needs to up this to about 50% of profit, to reward long term holders. Hoarding cash for the sake of it, isnt good for shareholders, return a little, and keep some for aquisition, or safety net, or just working capital. The business has grown steadily, so it can sustain higher dividend payments. If in the future the company wants to buy a big business and doesnt have that cash in the bank, im sure the financial markets will fund it.
 
adds4 said:
going to be another cracking result on monday. I bet fge will achieve the high estimate of its profit forcast. Fge always surpises on the upside. Stella result will propel the shares towards $10 by years end. For me the big driver of share price performance will be the dividend payment. Fge needs to up this to about 50% of profit, to reward long term holders. Hoarding cash for the sake of it, isnt good for shareholders, return a little, and keep some for aquisition, or safety net, or just working capital. The business has grown steadily, so it can sustain higher dividend payments. If in the future the company wants to buy a big business and doesnt have that cash in the bank, im sure the financial markets will fund it.
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Should be interesting, major shareholder Clough will no doubt be looking for a higher payout ratio and unless there is a major acquisition on the horizon I reckon FGE will agree. Don't forget this type of business needs a nice chunk of cash available to fund and guarantee projects.

As for $10.00 by years end, I would love to see that, the yield should go up but at that price you would be also be paying for some growth. Many parallels between FGE and MND in my opinion the major difference being at this stage in their development MND still had about 10 years of the mining investment boom to go, will LNG do the trick for FGE?
 
Thought this would have got a mention with all the followers here. Up 4.5% today on HY report

NPAT up 60%, dividend increased to 10cps
 
Nice result, the payout ratio did not increase as much as I thought, good to see they still think this capital can still be invested for decent growth. The fantastic organic growth of FGE in the recent past has been nicely complimented by the success of the acquisitions, hopefully these disciplines will continue into the future.
 
Not even BLY got a mention!
Profit and earnings slump.
57 per cent slump in full year profit.
Outlook for 2013, which appeared weaker than expected.
Boart slashed its final partly-franked dividend to one US cent a share from 5.6 US cents.
Whooops there goes that dividend play.
Sector may be due for a spanking after that is digested, maybe not in this market.
Stupid is back.
 
great result. Dividend payment is poor, considering the company has nearly 200m in the bank. What are they going to do with that money? Its not like they make very big aquisitions, 40m is the biggest so far? Return some cash to shareholders, and at the same time, it ups the price of the shares? Fge can then still buy more companies up, with the massive cash it has left.
 
adds4 said:
great result. Dividend payment is poor, considering the company has nearly 200m in the bank. What are they going to do with that money? Its not like they make very big aquisitions, 40m is the biggest so far? Return some cash to shareholders, and at the same time, it ups the price of the shares? Fge can then still buy more companies up, with the massive cash it has left.
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Even though this is a cyclical business I reckon they can keep as much capital as they as long as they get a decent return. The CTEC acquisition seems to be going well so far, they paid about 2.6 x EBITDA, and the new division now has the lions share of the order book.
 
FGE up big time today to 6.63 on huge volume 1.4 million shares. I have never seen that sort of volume with FGE.

Let the good times roll.

I have been plugging this one for a long time and bought up big on it.

The question now is how much is there left to go on this?
 
Intrinsic Value said:
FGE up big time today to 6.63 on huge volume 1.4 million shares. I have never seen that sort of volume with FGE.

Let the good times roll.

I have been plugging this one for a long time and bought up big on it.

The question now is how much is there left to go on this?
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Sold out most of my FGE today.

It was a hard decision but I made a handsome profit.

Will look to get back in if the price drops a bit in the next few months.
 
Clough are selling their 35% share in FGE to instos at $6.05 per share - a nice profit to them. Good riddance to them. Nothing much ever came of the joint venture.
 
tinhat said:
Clough are selling their 35% share in FGE to instos at $6.05 per share - a nice profit to them. Good riddance to them. Nothing much ever came of the joint venture.
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Yes I notice FGE are in a trading halt. I wonder what this means for FGE going forward.
 

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