VMG - VDM Group
- Thread starter numbercruncher
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Yes you were right in your observation .
06 Feb 2009 0.190 -55.81% 0.350 0.160 27,130,161 (volume)
whereas in the preceeding days the volume were less than 100000 units and today with about 2% rise the volume is more than 1 million already.
There could be few things to consider here.
Like any other consultancy organisation (Worley Parsonsw WOR, Clough CLO, Ausenco AAX etc) the share prices got hammered continuously. More to that VDM is basically an aggregate of few excellent engineers (Van De Meers, Como etc) and constructors (Civ Mec). But with due respect to their intelligence in engineering - none of them was very good as enterpreneurs. The interim profit warning has summed it up.
Their case could be like Brierty Construction BYC, MAH, CXG (you alerady said) - they will decline more excepting few ripples when general market sentiment goes up until there is a general market recovery and the customers start pouring money on their capital investment and VDM starts getting more work.
Market is very ruthless as we all know
and any hint of loss of market share by smaller players like VDM is getting unduly whipped - so VDM is no exception.Insult to injury VDM has decided to build a massive energy efficient building at $15 M at Osborne Park. http://www.vdmg.com.au/default.aspx?ContentID=180&TitleID=6&NewsItem=True
It was a nice announcement and probably right decision y 6 months back. However with current market and falling tenancy rate in Perth CBD this is going to be a night mare for their cash flow and sunk capital. (BTW The tenancy rate and vacancy will be further down in next 6 months when the big building currently made by BHPB will be ready and most of the BHPB offices will move to the new BHPB building).
However please do your own research as I am neither a chartist nor a "fundamentalist" but a Miner who can not distinguish between 'Fool's Gold and Real Gold.
PS : I do not hold VDM and this is posted for discussion only
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Hi James
I have taken a trading stake in VMG. It will either languish around here or recover, in the next few days if it does recover upwards
I believe it will likely recover for a few reasons.
As I have posted elsewhere:
Whilst risk still remains to the downside, there is opportunity for optimism I feel.
The recent fall seems strangely reminiscent of the Oct fall I have to say. On that one it fell dramatically from 1.25 to 75c
In Oct it then, during the next few days, stalled then recovered back to just under $1
If world markets continue up the next few days and some seem to agree if rsi's are indicating oversold, then we could see a similar recovery as to October, which would be looking at around the 25c to 28c mark if i'm not mistaken
Cheers,
Wilson!
I have taken a trading stake in VMG. It will either languish around here or recover, in the next few days if it does recover upwards
I believe it will likely recover for a few reasons.
As I have posted elsewhere:
Whilst risk still remains to the downside, there is opportunity for optimism I feel.
The recent fall seems strangely reminiscent of the Oct fall I have to say. On that one it fell dramatically from 1.25 to 75c
In Oct it then, during the next few days, stalled then recovered back to just under $1
If world markets continue up the next few days and some seem to agree if rsi's are indicating oversold, then we could see a similar recovery as to October, which would be looking at around the 25c to 28c mark if i'm not mistaken
Cheers,
Wilson!
This stock looks interesting. As I am new to shares, I was amazed how closely related are the profit loss to the subsequent share price (based on a couple of other shares lately that announced profit drop). If this is true and based on the annoucement made that day, the share price now looks to be the bottom.
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I have picked up 5k at 17c.. will see what happens.. I think that might take a bit of time to stabilise considering few institutions selling out there positions..
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I would like to see the directors buying some at this level to illustrate their confidence in the company..
Will see what happens over next couple of days..
Will see what happens over next couple of days..
Seems like an engineer's vision of a taj mahal.
Maybe the demise of the sp reflects the market not liking what it interprets as inappropriate, expensive projects with doubtful paybacks in times of economic duress, like we have nowadays.
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Annoucement this morning of another substanial share holder reducing there stake... The business park doesnt seem to bad as long as they are able to get a business partner onside for the joint venture. There after they take all the engineering fees.. Alot of these green projects tend to do very well.. similar to Norwest in Sydney very popular even though city remains stagnent..
Seems to be substanial buying over last few days cleaning up what has been sold by the large holders.. no real bounce yet..
Seems to be substanial buying over last few days cleaning up what has been sold by the large holders.. no real bounce yet..
There is quite a lot of buying from 0.18 to 0.185 but sp has been quite constant for the week. My guts tell me to get out early next week. But by looking at their currents projects, it doesn't look like a timebomb waiting to explode again, does it?
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I havent read how much % of there developement project they will actually be taking also. If they are taking a big % then there is alot more security for the partner who is coming on and further less risk for them. There after they might even flog it to an investor with a reasonable return. (if there are any investors / trusts left)..
bigdog
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There was an bad ASX ANN after the close of trading on Feb 5
VDM Group Ltd (ASX: VMG) expects its profit after tax for the six- month period ending 31 December 2008 to be in the range of $3–3.5 million. The expected result for the six-month period is disappointing.
Profit after tax for the six-month period ending 31 December 2007 was $11.2 million.
The SP crashed on Feb 6 to close at 19 cents
Date........ Close Volume
16-Feb-09 0.180 570,896
13-Feb-09 0.185 1,294,743
12-Feb-09 0.180 2,220,773
11-Feb-09 0.185 1,796,943
10-Feb-09 0.175 3,476,774
9-Feb-09 0.170 7,669,134
6-Feb-09 0.190 27,130,161
5-Feb-09 0.430 34,313
4-Feb-09 0.410 201,550
3-Feb-09 0.425 55,179
05-02-2009 06:07 PM VMG Interim Earnings Update
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00925130
Interim Earnings Update
Perth, 5 February 2009:
VDM Group Ltd (ASX: VMG) expects its profit after tax for the six- month period ending 31 December 2008 to be in the range of $3–3.5 million. It should be noted that these results are based upon internal management accounts and may be subject to change on completion of the audit review and consideration of the Board.
Profit after tax for the six-month period ending 31 December 2007 was $11.2 million.
This update has been released to satisfy the requirements of ASX listing rule 3.1 and ASX Guidance Note 8. VDM plans to release its half-year results on 27 February 2009 and will provide an overview of its half-year performance and an update of its dividend policy on publication of those results.
VDM Group Chief Executive Officer, John Farrell, said: “The expected result for the six-month period is disappointing. However, the second-half performance is expected to be stronger based on current tendering expectations. The Company has been able to increase revenue, which is expected to be in the $220–240 million range; however, earnings have been materially impacted on a number of challenging construction contracts and reduced margins.
VDM Group’s other Divisions’ performances have been satisfactory in light of the deteriorating economic and market conditions.”
I noticed that too. Now is 10:55am and it still hasn't got opening price or volume yet. Smelling something fishy about this lagged opening
bigdog
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Westpac Broking is reporting sales
VMG 0.18 0.005 2.86% high of 0.18 low of 0.175 96,000 shares $16,853 @ 18-Feb 11:12:05 AM
VMG 0.18 0.005 2.86% high of 0.18 low of 0.175 96,000 shares $16,853 @ 18-Feb 11:12:05 AM
bigdog
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http://www.wabusinessnews.com.au/en-story.php?/1/70770/VDM-posts-disappointing-net-profit-/dba
WA Business News reported:
VDM posts 'disappointing' net profit
27-February-09 by Edited announcement
VDM Group has today reported a "disappointing" net profit after tax for the half year of $3.2 million, on the back of revenues of $238.4 million.
Margins in construction activities fell during the period, as the effects of the global financial crisis impacted on the market. Despite difficult economic circumstances, particularly in the mining sector, VDM still managed to achieve revenue growth of 23 per cent over the corresponding period in the previous financial year.
Net operating cash inflows for the period were $11.9 million. The balance of cash and cash equivalents stood at $17.8 million at 31 December 2008. The EBITDA result for the six months was $16.3 million and compares to the result for the corresponding period of $20.9 million.
Commenting on the result, VDM Group CEO, John Farrell, said: "After several years of record growth and profits it is very disappointing to announce this result. A general tightening of margins, a number of poor performing contracts and increased overheads, not commensurate with the current market conditions, have all worked against us. In response to that we are winding down one of the non-performing business units and have almost completed the restructuring of another business unit back to its core competency. At every level of the organisation overheads are being reduced and disposal of surplus plant is occurring."
"We were able to lift revenues in the half and have a healthy order book for the balance of the year. We also have a number of significant tenders that are likely to be awarded in the second half which we expect will underpin our fiscal 2010 turnover."
"Our spread of business across industry sectors and geographies continues to provide VDM Group with a strong foundation. Whilst the integration of acquisitions of recent years has progressed well, we did see overheads increase in the period as we sought to standardise processes and systems across VDM Group to underpin future growth. Greater focus has now been placed on managing our overhead base and project margins to drive bottom line performance. Overall, VDM Group remains well placed to weather the current economic storm."
With global economic conditions likely to remain difficult, the Board considers it prudent to maintain VDM Group's balance sheet strength and has elected to suspend payment of an interim dividend.
WA Business News reported:
VDM posts 'disappointing' net profit
27-February-09 by Edited announcement
VDM Group has today reported a "disappointing" net profit after tax for the half year of $3.2 million, on the back of revenues of $238.4 million.
Margins in construction activities fell during the period, as the effects of the global financial crisis impacted on the market. Despite difficult economic circumstances, particularly in the mining sector, VDM still managed to achieve revenue growth of 23 per cent over the corresponding period in the previous financial year.
Net operating cash inflows for the period were $11.9 million. The balance of cash and cash equivalents stood at $17.8 million at 31 December 2008. The EBITDA result for the six months was $16.3 million and compares to the result for the corresponding period of $20.9 million.
Commenting on the result, VDM Group CEO, John Farrell, said: "After several years of record growth and profits it is very disappointing to announce this result. A general tightening of margins, a number of poor performing contracts and increased overheads, not commensurate with the current market conditions, have all worked against us. In response to that we are winding down one of the non-performing business units and have almost completed the restructuring of another business unit back to its core competency. At every level of the organisation overheads are being reduced and disposal of surplus plant is occurring."
"We were able to lift revenues in the half and have a healthy order book for the balance of the year. We also have a number of significant tenders that are likely to be awarded in the second half which we expect will underpin our fiscal 2010 turnover."
"Our spread of business across industry sectors and geographies continues to provide VDM Group with a strong foundation. Whilst the integration of acquisitions of recent years has progressed well, we did see overheads increase in the period as we sought to standardise processes and systems across VDM Group to underpin future growth. Greater focus has now been placed on managing our overhead base and project margins to drive bottom line performance. Overall, VDM Group remains well placed to weather the current economic storm."
With global economic conditions likely to remain difficult, the Board considers it prudent to maintain VDM Group's balance sheet strength and has elected to suspend payment of an interim dividend.
Hi
Market has already factored in the loss and that is why the price is 18cents. Who knows, they cancelled the divi, so may be we can see the price less than 10 cents.
Cheers
