MND - Monadelphous Group

[wonderrman]

Re: MND - Monadelphous

mnd has been trying to break over the past few days from a trading range between 10 and 12. Hasn't been able though volume has been low. One to watch, if it is able has a nice easy run to 16. further consolidation could be in order before hand.

daily and weekly attached.

regards,w.

 

[YELNATS]

Re: MND - Monadelphous

No-one has commented on this company for quite some time.

It has been on my watch list for a while and a review of their recent annual report indicates a solid performance and a good outlook. They also pay a very steady dividend of over 5% fully franked.

Their price has just dipped below $13 and perhaps they look a good long term investment.

Does anyone have any current comments?

 

[skc]

Re: MND - Monadelphous

No-one has commented on this company for quite some time.

It has been on my watch list for a while and a review of their recent annual report indicates a solid performance and a good outlook. They also pay a very steady dividend of over 5% fully franked.

Their price has just dipped below $13 and perhaps they look a good long term investment.

Does anyone have any current comments?

Agree the company has decent fundamentals. The chart however show that potentially cheaper prices to come in the short term. The channel in place for the last 12 month has just been broken. A micro pattern of decending triangle formed in the last week. Wouldn't surprise me for this to enter typical retracement zone at ~$10 if it was to break below $12.

 

[condog]

Re: MND - Monadelphous

In my opinion of the very best fundamentals on the entire ASX...

81% ROFE, 0 debt to eq, 33% Eq Ratio, Around value, slightly dear by about 10%, low liabilities, and a value adding stock that can dictate price in good times. Outlook for its sector is very encouraging.

 

[noie]

Re: MND - Monadelphous

Nice contract with BHP announced today

Leading engineering group Monadelphous Group Ltd (ASX: MND) (“Monadelphous” or “the
company”) today announced it has secured new contracts and work in Western Australia and Papua
New Guinea with a combined value of approximately $120 million.
The contracts and work are with major operators in the oil and gas, iron ore and water sectors.
In PNG, Monadelphous has been awarded a three-year extension of a contract with Oil Search for
field construction services at its oil and gas production and support facilities in the Southern Highlands
Province. This extension follows a previous three-year contract.
The agreement also includes additional work to upgrade Oil Search’s Kutubu and Gobe facilities in
preparation for the delivery of gas to the PNG LNG project. This work is scheduled to be completed in
the third quarter of 2012.
In WA, Monadelphous’s newly-acquired business KT Pipeline Services has been awarded a contract
to construct intake and outfall pipelines and associated work for the desalination plant at CITIC Pacific
Mining’s Sino Iron project at Cape Preston in the Pilbara. The contract is expected to be completed in
early 2011.
Monadelphous has also been awarded a contract with the WA Water Corporation to supply, construct
and commission a water treatment plant at Picton, near Bunbury. The plant, with a capacity of 11
megalitres a day, will treat underground water for supply to Australind and Eaton. It is scheduled for
completion in late 2011.
The company will also undertake structural and mechanical work for BHP Billiton Iron Ore on Rapid
Growth Project 5 at the iron ore port facilities at Finucane Island, Port Hedland. The work is expected
to be completed by December 2010.
The contracts and work are spread across Monadelphous’s three operating divisions of Infrastructure
(which includes KT), Engineering Construction, and Maintenance and Industrial Services.
“They reflect the emphasis we place on maintaining our relationships with customers in major
projects, securing new business and continuing our diversification into selected infrastructure areas
such as pipelines and water,” Monadelphous Managing Director Rob Velletri said

 

[robusta]

Re: MND - Monadelphous

In my opinion of the very best fundamentals on the entire ASX...

81% ROFE, 0 debt to eq, 33% Eq Ratio, Around value, slightly dear by about 10%, low liabilities, and a value adding stock that can dictate price in good times. Outlook for its sector is very encouraging.

Not a lot changed in 9 months. Most be a bit booring to a lot of people these guys still have great fundamentals.

Nice contract with BHP announced today

In WA, Monadelphous’s newly-acquired business KT Pipeline Services has been awarded a contract

Bought with open arms in May very happy with 20% (paper) capital gain and nice dividend.

The only slight annoyance with MND for me is why issue capital and take on debt to buy KT Pipeline while maintaining high dividend payout ratio?

IMO I think it would be better for shareholders to cut dividend and pay for KT out of retained profits as this would'nt have such a negative effect on ROE.

 

[noie]

Re: MND - Monadelphous

I am unsure of their Business decision to acquire KT they way they did i started following these guys early July, they have picked up a few nice pipeline contracts since then, so i think the KT direction itself was on the money.

30million cost. (part deferred)

85million chevron contract one month later.

And i don't believe they have any net debt. Annual report shows "The business remains net debt free"

 

[robusta]

Re: MND - Monadelphous

I am unsure of their Business decision to acquire KT they way they did i started following these guys early July, they have picked up a few nice pipeline contracts since then, so i think the KT direction itself was on the money.

30million cost. (part deferred)

85million chevron contract one month later.

And i don't believe they have any net debt. Annual report shows "The business remains net debt free"

Yes I think you are right about no debt I stand corrected (and happier).
This is from the Annual Report

"SIGNIFICANT EVENTS AFTER THE BALLANCE DATE

On 1 July 2010, Monadelphous Group Limited acquired 100% of the voting shares of KT Pty Ltd, a private
company based in Australia specialising in high pressure gas pipeline and facilities construction throughout
Australia and overseas. The acquisition will expand the range and capabilities of services offered by the
Group.
The upfront consideration comprised a cash payment of $10,000,000 and 422,627 ordinary shares. A
further deferred component is payable subject to KT Pty Ltd achieving certain financial targets over the
period to 31 December 2011. The deferred component will comprise approximately one-third cash and
two-thirds shares, and the total consideration payable will not exceed $30,000,000.
At the date the Financial Statements were authorised for issue, the initial accounting for the business
combination was incomplete with the fair value assessments of the identifiable assets and liabilities
acquired at acquisition and the estimation of the value of the deferred consideration to be finalised. As a
result it is not possible to disclose the carrying value or fair value of the identifiable assets and liabilities
that will be recognised at 1 July 2010, the acquisition date fair value of consideration transferred, or to calculate the value of goodwill."

That just leaves me hoping that the price paid for KT Pty Ltd does not dilute current equity per share. To be more positive however it does give MND some nice leverage into the booming energy sector. MND must know what they are doing look at performance to date.

 

[robusta]

Re: MND - Monadelphous

Sp has run a fair bit past intrinsic value IMO. Will have to think about taking some profits soon. Hard decision plenty of nice dividends to come while I think about it.

 

[robusta]

Re: MND - Monadelphous

Sp has run a fair bit past intrinsic value IMO. Will have to think about taking some profits soon. Hard decision plenty of nice dividends to come while I think about it.

The time is here for me. Sold out of MND today at $20.06, love the company but my view is the sp has run too far past IV. Bought in Jan 2010 @ ~ 12.50 and again in May @ ~ $13.00 wanted to hold long term but could not go past market offer of $20.00 +

 

[VSntchr]

Re: MND - Monadelphous

The time is here for me. Sold out of MND today at $20.06, love the company but my view is the sp has run too far past IV. Bought in Jan 2010 @ ~ 12.50 and again in May @ ~ $13.00 wanted to hold long term but could not go past market offer of $20.00 +

well done

 

[voigtstr]

Re: MND - Monadelphous

With the pivot point on the 17/2/11 it looked like it was going start a bit of a fall, a few days later and it started heading back up again. Today (4/3/11) was a 6.1% rise. Why did it jump up so much today? I see some recent positive news but I couldn't see anything to explain today's jump. Just curious if this a true continuation of a trend, or if something fundamental is happening with the stock?

Obligatory disclosure:I own some shares in Monadelphous.

 

[Julia]

Re: MND - Monadelphous

The time is here for me. Sold out of MND today at $20.06, love the company but my view is the sp has run too far past IV. Bought in Jan 2010 @ ~ 12.50 and again in May @ ~ $13.00 wanted to hold long term but could not go past market offer of $20.00 +

With the pivot point on the 17/2/11 it looked like it was going start a bit of a fall, a few days later and it started heading back up again. Today (4/3/11) was a 6.1% rise. Why did it jump up so much today? I see some recent positive news but I couldn't see anything to explain today's jump. Just curious if this a true continuation of a trend, or if something fundamental is happening with the stock?

Obligatory disclosure:I own some shares in Monadelphous.

This is one company I really regret selling when the GFC hit.
For what it's worth, Huntleys currently have a sell on it on the basis that it has run so hard.
If I were still holding it, that would not make me sell it.

 

[robusta]

Re: MND - Monadelphous

This is one company I really regret selling when the GFC hit.
For what it's worth, Huntleys currently have a sell on it on the basis that it has run so hard.
If I were still holding it, that would not make me sell it.

Definately a extraordinary business Julia but it seems neither of us would be happy to hold at these prices.

 

[voigtstr]

Re: MND - Monadelphous

Definately a extraordinary business Julia but it seems neither of us would be happy to hold at these prices.

Isnt it better to hold a stock that is going up? I'm happy to set a stop loss, either at a previous swing low, or the bottom of a trading channel, and if the stock drops there sell it. If its heading to the sky, I want to stay on it.

 

[Julia]

Re: MND - Monadelphous

This is one company I really regret selling when the GFC hit.
For what it's worth, Huntleys currently have a sell on it on the basis that it has run so hard.
If I were still holding it, that would not make me sell it.

Isnt it better to hold a stock that is going up? I'm happy to set a stop loss, either at a previous swing low, or the bottom of a trading channel, and if the stock drops there sell it. If its heading to the sky, I want to stay on it.

Agree entirely voigtstr. Robusta misinterpreted what I said.

 

[robusta]

Re: MND - Monadelphous

The time is here for me. Sold out of MND today at $20.06, love the company but my view is the sp has run too far past IV. Bought in Jan 2010 @ ~ 12.50 and again in May @ ~ $13.00 wanted to hold long term but could not go past market offer of $20.00 +

Isnt it better to hold a stock that is going up? I'm happy to set a stop loss, either at a previous swing low, or the bottom of a trading channel, and if the stock drops there sell it. If its heading to the sky, I want to stay on it.

Just a different philosophy voigtstr. I like to sell when the market offers me a price I calculate to be a significant premium to my calculation of IV af I have no way of predicting short to medium term price movement.

Agree entirely voigtstr. Robusta misinterpreted what I said.

Sorry Julia I thought you quoting Huntleys meant you agreed with their opinion re MND being overpriced.

On another subject we are a strange mob on ASF we have pages and pages of posts on speculative businesses such as CFU, MAD... amd here is a excellent business only up to page two after all these years

 

[Boggo]

Re: MND - Monadelphous

On another subject we are a strange mob on ASF we have pages and pages of posts on speculative businesses such as CFU, MAD... amd here is a excellent business only up to page two after all these years

Agree, and an interesting observation especially when you look at the Telstra thread of 50 pages where they get excited when it turns up 5c, 90% of them have never heard of MND but they call themselves investors

 

[Julia]

Re: MND - Monadelphous

On another subject we are a strange mob on ASF we have pages and pages of posts on speculative businesses such as CFU, MAD... amd here is a excellent business only up to page two after all these years

Agree, and an interesting observation especially when you look at the Telstra thread of 50 pages where they get excited when it turns up 5c, 90% of them have never heard of MND but they call themselves investors

Yes, you're both right. There are others similarly not much discussed compared with TLS, WOW etc, e.g. BKN (Bradken) and WOR (Worley Parsons).
Perhaps it's a reflection of what the media put up for discussion? i.e. TLS is always being discussed.

 

[voigtstr]

Re: MND - Monadelphous

-4.7% today. Was there something fundamental going on, or just reaction to Japan's nuclear reactors again?