Dont know why it cheong this morning. it\'s up 10% to 50 cents, on nearly 11 million shares traded as at 1030 am. The last announcement was six days ago on Aug 8 regarding its A$60 m new contract. Still it should be said that AusGroup\'s order book is bulging and impressive. It\'s at a record high, but the stock is at levels when the order book was a fraction of current A$295 million.
AusGroup\'s customers include BHP Billiton Ltd., the world\'s largest mining company, which todday surged 5.3 percent, driving the MSCI Asia Pacific Materials Index to the biggest gain since April 21. Commodity prices rallied today, coinciding with a rebound in the Baltic Dry Index, which tracks transport costs of raw commodities on international trade routes. The BDI gained 1.5 percent yesterday, ending a 23-day, 25 percent slump
SINGAPORE, Aug 26 (Reuters) - Shares of Australia-based engineering firm AusGroup fell as much as 8.7 percent on Tuesday to nearly a two-year low, after UOB downgraded the company to a \"sell\" due to its poor fourth-quarter results. The group, which invests in sectors such as oil and gas and mining, reported on Monday that its April-June net profit fell 7.2 percent to A$5.7 million ($4.9 million) compared to a year earlier. UOB analysts in a report attributed AusGroup\'s fall in earnings to sharply lower margins, high operating expenses and unit Cactus\' disappointing sales, and lowered its price target to S$0.43 from S$1.40. However, OCBC said on Tuesday that it was maintaining its \"buy\" recommendation for AusGroup due to the positive outlook for the industry, and the firm\'s current low share price. AusGroup shares fell as much as 8.7 percent in intra-day trading to S$0.42, with about 4.7 million shares traded. 0400 GMT - Straits Times Index was down 1.5 percent.
ausgroup once was sitting so pretty at above $2 last July. today, closed at 36.5 cents - deep down in the abyss. how can when the order book is at record high? is the market over-reacting to the recent disappointing results???
Q1 results are decent. The net profit attributable to shareholders recorded an increase of 17.8% to AUD$5.8 million for 1QFY09. Revenue increased 46.4% to AUD$130.4 million Strong operating cash flow of AUD$33.6 million in the quarter Order book stands at AUD$286 million
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