AUSGROUP

A$30 m from Rio Tinto .... The orderbook is fattening under Kenny .....

info.sgx.com/webcoranncatth.nsf/VwAttach...inal.pdf?openelement

using 4Q 2011 eps of 1 cent, the PE of ausgroup is about 8X historical.

gross margin in 4Q was 12.4%, which suggests that this is a low-margin business.

why today run up on high vol ? anyone has any idea?

Sold this high flyer few yrs ago. Have been watching since new CEO L Barlow came on board 12Mar . Decided to jump in as vol hit 12 million this morning. Betting on the new CEO as he has strong credentials from Fortune 500 company.  

Horse moving in the right direction. Made the bet on the jockey, not the horse. This methodology not recommended. 

Congrats! What price you bought jockey & horse?

Neigh - This is actually a good horse but it needs a top jockey to guide it to the winning post. The co. has strong balance sheet and cash flow, but  needs  better project execution to improve its puny 3.7% nett profit ( vs Civnec’s 9% n PE 15X ).  Other than ASX listing, new CEO is also targeting AUD1 billion revenue plus improved nett profit to industry ave 6 to 7 %.
 These targets are realistic as the mining capex committed in Oz is abt AUD260 billion ( 60% are for LNG projects ) and I think L Barlow is the man to do it.  Sidetracking,  Ezion ( am vested ) has a strong presence in Oz LNG industry too.  My views only.