SDM - Sedgman Limited

piggybank said:

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Piggy Bank

First of all I am not chartist. Fundamentally I will not be shocked to see SDM to follow suits with Worley Parsons WOR or AAX Ausenco. Both AAX and WOR have better hold of contract work probably than SDM has. resourcewise and capability wise WOR and AAX have been at an envious order book position. If I can draw the corollary I see the bouncing cat for SDM could be a tall asking
DYOR

Cheers

So to update - this one has been a rare goody in the mining service sector.
However it is now subject to a hostile takeover bid from Cimic Group, the entity that absorbed Leightons.
Bid is at 1.07
Sedgman SDM has been paying big dividends over the course of this discussion, including a special dividend of 2.2c to add to the fy15 final div of 3.8c. The total years franked div for fy15 was 9.5c.

I regret the takeover - SDM has loads of cash, $109m as at June 2015, and has shown its versatility by moving beyond its specialty of coal handling and preparation plants. It has tackled other minerals, including two successfully commissioned gold plants. If there's a new gold boom imminent, as i believe, SDM would have been set.
Soon, as a last gasp, Sedgman will be paying another special dividend in addition to the H1 fy16 interim dividend.

On April 15th, 2016, Sedgman Limited (SDM) was removed from the ASX's official list in accordance with Listing Rule 17.11, following confirmation that the compulsory acquisition of all the Company's securities by CIMIC Group Investments Pty Limited has completed.