ANG - Austin Engineering

[Miner]

I think it will be good news.
My bell potter adviser (normally made stupid advise) strongly advised to buy ang. Then I followed it and with its recent acquisition and growth plan probably there are many more better news coming.
Unfortunately I could not rely with BP Analyst and contrary to his advise I sold them.

Just for information and not any recommendation

Regards

 

[justjohn]

An announcment was made this morning that ANG has made a major international expansion with the purchase of US based Western Tech Services for US$19 million

 

[justjohn]

up 7 % coming out of trading halt now $3.10 got to start seriously thinking about my position with this one now

 

[michael_selway]

up 7 % coming out of trading halt now $3.10 got to start seriously thinking about my position with this one now

Hm absolutely crazy! cant believe i kept my ye on this one

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 11.7 20.7 23.9 27.2
DPS 4.0 5.8 7.0 8.5

thx

MS

Brisbane, 3 December 2007: Austin Engineering Limited (ASX trading code: ANG) today announced a major international expansion with the acquisition of U.S.-based Western Technology Services International Inc (Westech) for $US19 million. The purchase of the business, based in Casper, Wyoming in the U.S., includes $US13.8 million of property, plant and equipment and other net assets. The purchase price is equivalent to a multiple of 3.2 times forecast earnings before interest and tax for financial 2007-08. It represents Austin’s largest expansion since the company listed on the ASX in 2004. Austin Chairman Peter Fitch said the Westech acquisition would provide Austin with an excellent platform to target the strong resources markets of North and South America and Canada. It also presented the opportunity to acquire the intellectual property behind Westech’s design for market-leading lightweight off-highway dump truck bodies, which it licences to companies including Austin. Established in 1938, Westech serves the resources sector in North and South America and Canada with products including dump truck bodies, cable reels and dragline and shovel buckets. It has forecast revenue of $US36 million and earnings before interest and tax of $US6 million for its financial year 2007-08 commencing on 1 November 2007. Westech’s lightweight body design is world leading technology, allowing trucks to carry more pay load and increase productivity - a strong attraction for major mine operators. Mr Fitch said Westech’s business was well understood by Austin as its model and operating structure were similar to that used by Austin’s JEC Mining & Earthmoving division in Australia. It also has some processes and clients in common with Austin. “The Westech acquisition represents a significant point in Austin’s expansion and development,” Mr Fitch said. “We now own both a robust and well established business in the world’s biggest mining and resources market and the intellectual property to a world-recognised dump truck body design that is employed in all the major mining nations.” Westech’s existing management has agreed to stay with the business, ensuring there is minimal disruption from the change in ownership. “We expect that synergies between the businesses will lead to savings on the procurement of materials and will assist in expanding the product range of both companies,” Mr Fitch said. “Significantly, the purchase will give us the opportunity to approach the major mining OEMs (Original Equipment Manufacturers) and mine operators around the world as a ‘one-stop shop’. “Another benefit is the expansion potential of the business in South America and Canada from leveraging our current mining products business model,” he said. Mr Fitch said Austin would fund the Westech deal from bank debt and existing cash resources. There are no plans to raise capital for this acquisition, which continues Austin’s recent expansion through purchases including Austbore Pty Ltd and Kaldura Industries in Mackay.

 

[justjohn]

ANG up again this morning, now up 6.5% but must be nearing the end of its run. I'm going to offload 50% to take profits. Anyone else hold this?

 

[The Mint Man]

ANG up again this morning, now up 6.5% but must be nearing the end of its run. I'm going to offload 50% to take profits. Anyone else hold this?

Probably a good idea to take some back and leave the rest to keep working away, hopefully on the upside that is
ANG has had a stellar run, from about $2.20 in early November to a high of $3.65 early today, representing a 65% if you sold out this morning.
Not bad!

Wish I had bought in myself where was the hot tip John???

Cheers

DYOR

 

[michael_selway]

ANG up again this morning, now up 6.5% but must be nearing the end of its run. I'm going to offload 50% to take profits. Anyone else hold this?

Hm it might turn out to be a mini WOR since now its has expanded into US?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 11.7 18.5 23.6 27.5
DPS 4.0 5.5 7.0 8.5


Forward PE wise its still "cheap" compared to WOR

what do you think?

thx

MS

Date: 4/12/2007
Author: Nina Wan
Source: The Australian Financial Review --- Page: 50
Australian mining products maker, Austin Engineering, has made an acquisition inthe US. It has bought Western Technology Services for $US19 million ($A21million). It is Austin's first major overseas expansion and gives it accessto the US resources market. Austin chairman, Peter Fitch, says that synergieswill give savings in procuring materials and expand its product range

 

[grace]

I think I am very stupid for buying them at around 80c earlier this year (Jan), and selling just over the dollar mark. Noone seemed to know about them at the time and I got bored waiting. I also did not know how to analyze the fundamentals of a stock at the time because it was one of my first investments. You live and learn!

 

[cjfisher]

Earning Guidance FY 2008 is about $17 million (recent announcement) - this is represents an EBIT growth of about 130%. Based on owner earning (Warren Buffets model) this puts the value of this share at well over $4.

With Return On Equity (ROE) at better than 35% and annual growth at about 2X over the last 2 years and the strength of the materials market (china effect) this would have to be one of the most go ahead of current small cap companies.

Astute management is evident in recent acquisitions and financing at 4% from the USA. (I bought these shares at $0.48 2 years ago).

If anyone knows of any share with better or equal characteristics I am keen to know about it as my portfolio is now very unbalanced.https://www.aussiestockforums.com/forums/images/smilies/biggrin.gif

 

[Idiode]

It is timely to revisit this stock after a couple of years.

Congratulations to all those smart people who invested in this stock at much lower prices.
Everything seems to be going so well with the company that you have to ask what could go wrong.
It is certainly capitalising on the world demand for resources which looks like continuing for many years to come.
The only real flaw I can really see is that their Dividend Yeild is currently 2.7%. At the current SP of $4.29 my calculated projected yeilds based on forecasts are 2011-2.8%, 2012 -3.5%, 2013-3.3%.

This makes it too expensive for a full franked yield play. Will have to watch for bad news to bring the price down. Should have.......

 

[Miner]

I am a small holder.
It is one of the growth stocks recommended by southern equities.

It has large holding by BKN. If I am not too far off in next 6 months if BKN approaches to take it over I will not be surprised.

ANG is making very good progress in overseas manufacturing too.

I am holding and stopping temptation to sell it as I did with RIV, LYC, PRU, MIN, BKN

 

[magicmoment]

who buys ANG for the yield? Sorry but even BHP only pays a 2.1% yield. Obviously management think that they can invest the profits at a better return than returning it to shareholders. The results are in the proof of the expansions such as Westech, and Hunter Valley purchase. Anyway your capital appreciation exceeds whatever dividend ANG could have paid.

 

[piggybank]

2012/13 Full Year Results:-

http://stocknessmonster.com/news-item?S=ANG&E=ASX&N=751054

 

[notting]

Well this should be entertaining

Technically ANG was lining up to drop further if it broke it's little upside down flag at around 3.
And to help smash it's shareholders in the face at this low level it has announced a capital raising at between 3 and 3.20.
However, it turns out, that ANG has made a shrewd round house kick to the head of BKN who has made a highly conditional cashless offer Based on last closing price of BKN being $5.50 valuing Austin at $4.13!
The Proposal represents a 31.8% premium to Austin’s last closing price of A$3.13 per share
The Proposal represents a 32.9% premium to Austin’s 5 day VWAP of A$3.105

Hmmm. Ya gonna have to do better than that BKN because there is going to be more shares to buy at the very least!
Those who want to take up the offer may see BKN walk whilst they wait for their shares only to see the share price break down below $2.50.

See if BKN immediately cancels its offer.

 

[notting]

The half year report opens like this (surprisingly there were no clowns doing somersaults and pulling things out of hats) - Drum roll please.

HY 13/14 Highlights
•
A much quieter period than anticipated

It just so happens that the capital raising is done and this wasn't mentioned in that offering.
But then again it wasn't anticipated!
What was that again? When was it not anticipated.
Another class action should be started for those who took up the capital raising.

PS I was watching the CEO of BKN field a question on the ANG take over proposal. He was talking past tense which was interesting without meaning to. It sounded like 'we made that offer, moving on, as they didn't accept it. If they change their minds it makes sense to us.
BKN is trading at 4.55 valuing ANG now at 3.417.
No one is winning it seems.

 

[notting]

Brisbane, 27 February 2014:Austin welcomes the announcement by Bradken Limited today that it has withdrawn its unsolicited, highly conditional non-binding proposal that it made in December 2013 for all of the shares in Austin that Bradken does not already hold.

And the market welcomes a share drop of a further 14.2%.

But don't' worry, ANG management are anticipating new contracts.

Class action is there for the taking if I was long, I'd be taking!

Austin notes that Bradken currently intends to maintain its strategic holding in Austin. Now for the conspiracy theory.
- Maybe BKNs offer was a joke to prop up the price so the retail end of ANGs capital raising would hold up and hence Bradkens existing investment in ANG is less risky - a longer term play.

 

[skc]

Brisbane, 27 February 2014:Austin welcomes the announcement by Bradken Limited today that it has withdrawn its unsolicited, highly conditional non-binding proposal that it made in December 2013 for all of the shares in Austin that Bradken does not already hold.
And the market welcomes a share drop of a further 14.2%.

Lol. My thoughts exactly... the market welcomes the news with a smack in the face.

But don't' worry, ANG management are anticipating new contracts.

Class action is there for the taking if I was long, I'd be taking!

Austin notes that Bradken currently intends to maintain its strategic holding in Austin. Now for the conspiracy theory.
- Maybe BKNs offer was a joke to prop up the price so the retail end of ANGs capital raising would hold up and hence Bradkens existing investment in ANG is less risky - a longer term play.

Hopefully not but BKN did rig a bid a few years back.

In 2011 Norcast S.ár.L (Norcast), which was controlled by Swiss private equity firm Pala Investments, made the decision to sell its Canadian portfolio company, Norcast Wear Solutions, Inc (NWS). NWS and Australian mining consumables company Bradken Limited (Bradken) were two of the major global manufacturers of grinding mill liners. The two had history following an Australian anti-dumping action brought by Bradken against NWS in 2002 and a subsequent unsuccessful attempt by Bradken to acquire NWS.

While Bradken was a logical acquirer of NWS, UBS (the vendor's investment bank) did not contact Bradken directly about the sale. Consequently, Bradken believed it had been excluded from the sale process. Bradken decided to approach Castle Harlan, a New-York based private equity fund, which had not known about the sale and with whom Bradken had a long relationship. Were a private equity firm to acquire NWS, Bradken thought, it was likely to have a subsequent opportunity to purchase it. Bradken and Castle Harlan concealed Bradken's involvement in the sale process.
In July 2011, Castle Harlan purchased NWS for US190 million. Just a few hours later, Castle Harlan on-sold NWS to Bradken for US212.4 million. The Federal Court found that before the 'back-to-back' sale there had been a bid rigging arrangement between Bradken and Castle Harlan, by which Castle Harlan agreed to bid for NWS and Bradken agreed not to bid for NWS.

Norcast was awarded damages of US22.4 million. This represented the difference between the price Castle Harlan paid for NWS and the price Bradken paid to Castle Harlan. Two of Bradken's directors, including former New South Wales Premier Nick Greiner, were also found to be accessorily liable.

http://www.minterellison.com/publications/Norcast-v-Bradken-a-cautionary-tail-MA201307/

 

[Miner]

Lol. My thoughts exactly... the market welcomes the news with a smack in the face.



Hopefully not but BKN did rig a bid a few years back.



http://www.minterellison.com/publications/Norcast-v-Bradken-a-cautionary-tail-MA201307/

Great research SKC and thanks for the historical records.
Some of the good brokers doubted the ANG share placement at $3.2 but the BKN previous offer made the share price jacked up. I was very unhappy when I sold the XR shares and applied for my rights. The directors never expressed their intention to deprive the existing share holders. But when the share price shot up then they used their discretion (what a joke) to deprive those share holders who even qualified their rights but not holding the shares on the date of allotment. My complaint to company secretary did not get any response. Advance Share Registry kept on saying like robot that the directors exercised their 'DISCRETION'. As if they have inherrited such discretion. So I complained to relevant authority

But what goes that comes back. Sorry for curren holders and rights buyers, I am sadistically happy to see ANG collapsed thanking the directors 'discretion' to save my hard earned money .

I am waiting to see ANG to be punished further Sorry for vindictive but I was pxxed off with the calous attitude of ANG discretion and no phone call / email return from the secretary. Looks like another Alan Joyce story here.
HA HA Dont hold any ANG share now - disclaimer

 

[Miner]

I am a small holder.
It is one of the growth stocks recommended by southern equities.

It has large holding by BKN. If I am not too far off in next 6 months if BKN approaches to take it over I will not be surprised.

ANG is making very good progress in overseas manufacturing too.

I am holding and stopping temptation to sell it as I did with RIV, LYC, PRU, MIN, BKN

Did I have crystal ball in 2010. BKN did come with an offer but few years after and then backed off .

 

[Miner]

Great research SKC and thanks for the historical records.
Some of the good brokers doubted the ANG share placement at $3.2 but the BKN previous offer made the share price jacked up. I was very unhappy when I sold the XR shares and applied for my rights. The directors never expressed their intention to deprive the existing share holders. But when the share price shot up then they used their discretion (what a joke) to deprive those share holders who even qualified their rights but not holding the shares on the date of allotment. My complaint to company secretary did not get any response. Advance Share Registry kept on saying like robot that the directors exercised their 'DISCRETION'. As if they have inherrited such discretion. So I complained to relevant authority

But what goes that comes back. Sorry for curren holders and rights buyers, I am sadistically happy to see ANG collapsed thanking the directors 'discretion' to save my hard earned money .

I am waiting to see ANG to be punished further Sorry for vindictive but I was pxxed off with the calous attitude of ANG discretion and no phone call / email return from the secretary. Looks like another Alan Joyce story here.
HA HA Dont hold any ANG share now - disclaimer

Did I have crystal ball in 2010. BKN did come with an offer but few years after and then backed off .

Looks like ANG rightfully is not an interesting stock any more.
The profit dived by more than 90% and no dividend. However the salary of CEO has gone up with performance review. What are the hidden deals that makes the CEOS always benefitted even the share holders get shafted ?
Once again I thank the Board for exercising discretion not to provide me the rights at $2.4 - what a favour looking back.
With BKN closing the last of their foundry from May 2015 and ANG is going south even with lower dollar where these companies will travel ?
Should I buy SIM because they can buy both companies for their scraps ???