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PRG - Programmed Maintenance Services

Discussion in 'Stocks I-P' started by System, Aug 27, 2011.

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  1. System

    System Administrator

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    Programmed Maintenance Services (PRG) is a provider of staffing, maintenance and project services, employing several thousand staff and tradespeople in government and the private sector. PRG has a database of personnel to service customers under mostly long term contracts, through branches located in Australia, NZ, the UK, and Singapore.

    http://www.programmed.com.au
     
  2. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    Has anyone had a look at this?

    Paying a 13c (6.7%) dividend and forecast earnings are increasing. And directors buying recently.

    On the chart a break of $2 might stir some interest.

    Worth further research?
     
  3. brty

    brty Well-Known Member

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    Yes, I have had a look at this. This company is on my buy list. I'm waiting for a technical reason to buy, hopefully a retracement to the $1.75 area.

    The directors buying has not been conclusive, small $10-20k purchases recently. I tend to discard small buying as a signal. In June a director stumped up $120k for 50,000 ; $2.40/share. He got it wrong, but that is a positive sign of confidence in those prices.

    Looking at debt levels, this company has been paying off debt with the high cashflow over the last couple of years. My suspicion is that if cashflow can be maintained within 70% of last years, then both earnings and dividends will rise. I'm surprised the purely FA investors are not all over this.
    There are many small to medium companies that are showing good dividends, have low price to book ratios, and lowered debt levels over the last couple of years. Also looking at price multiples compared to pre GFC, there appear to be lots of bargains to be had.
    PRG had cashflow of 18c/share, earnings of 26c/share and debt of $43m in 2005, while the share price spent a lot of time north of $5. Today we have have cashflow of 40c/share, earnings of 26c/share and debt of $58m, yet SP of $1.94.
    Dividend in 2005 was 14.7c/share and grew to 18.1c/share in 2007, while cashflow went from 18c to 23c in the same time period.
     
  4. skc

    skc Well-Known Member

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    Where did you get these numbers from?

    The H1 results showed that NPAT was $12.3m (10.4cps), net op cash flow was $19.1m (16cps) and net debt of $96m.

    Back in 2005, PPP (public-private partnership) was all the rage and PRG can win a 30yr concession for a project with guaranteed revenue... those opportunities are no more.
     
  5. brty

    brty Well-Known Member

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    Apologies, those figures were for the year ended 3/12 from the annual report. Have not updated for the first half 12/13. Debt figures were for long term debt, with current account showing improvement (again in the latest annual report)

    A quick squizz at the 1/2 year shows LT debt has risen slightly to $63m and C/F up to $19m compared to previous corresponding period.

    I find actual results a good indicator, rather than what -iffss. I only mentioned 2005 as a comparison as some of the metrics were similar.
     
  6. systematic

    systematic Well-Known Member

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    I had them a little earlier in the year and ditched them for something else.

    I currently have them as one of 5 (in the ASX300) very 'deep value' picks that have a good financial score.
     
  7. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    Care to share your other 4?
     
  8. systematic

    systematic Well-Known Member

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    Yeah sure, for better or worse...unsurprisingly(?) mining services feature heavily...
    GRR, BLY, MAH & EHL
     
  9. trillionaire#1

    trillionaire#1 Well-Known Member

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    I bought a few thousand shares in PRG last week,part of my dividend paying portfolio .
    A steady enough company in unsteady times.
    There are more spectacular stocks out there ,hopefully i already own them!
     
  10. Country Lad

    Country Lad Off into the sunset

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    Yesterday's closing chart, break this morning from the Country Lad setup.

    prg 15 Nov 13.gif

    Cheers
    Country Lad
     
  11. piggybank

    piggybank Well-Known Member

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    It looks like Country Lad is enjoying the fruits (full-time travelling) of his recent buys in the market:D

    PRGs.gif
     
  12. notting

    notting Well-Known Member

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    PRG trading at 2.38 values SKE at 1.45 which is now trading at 1.59. :cool:

    When a company bids for another usually it goes down, PRG went up!

    OK so share holders like the idea of a tie up and the offer must have been so low that everyone loved it.

    SKE fast tracked the new CEO into the seat presumably because the guy exiting is less likely to be motivated to hang on and try and grind the company out of it's oil related services lag. Also SKE informally called the bid opportunistic. It's basically a swap with 25c cash to SKE holders valuing the deal at current price of 1.45.

    So it aint going to happen here. Does PRG really want to start raising the price at this point in this mining services environment?
    One would think if they did, well, that would put a bit of a downer on PRG. Their all looking a bit BLY to me. As in, that's what happens to drillers when times where OK and flat! Now times are cactus and very much downward looking.
     
  13. pixel

    pixel Well-Known Member

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  14. notting

    notting Well-Known Member

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    They basically raised the scrip bid by only 5c!
    A miserable but sensible amount.
    Surprisingly PRG is acting like a company that knows what it is doing.
    I much prefer to see take overs happening when things are looking horrible than when things are looking good.
    Still I'm shorting this one today!
     
  15. SilverRanger

    SilverRanger Well-Known Member

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    Still struggling to find borrows to trade the arb, still some decent amount of juice out there
     
  16. ukulele

    ukulele Well-Known Member

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    You'd be decently happy with that short Notting? I went short just before the dividend and took profits because I didn't want to hold over the weekend.
     
  17. notting

    notting Well-Known Member

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    Yeah.
    And it just stuck it's nose under 200 day moving average so, could be more to come quickly if it doesn't consolidate for too long or reverse with attitude (volume)
     
  18. Wysiwyg

    Wysiwyg Everyone wants money

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    This is a stock I bought 4000 units in today. The volume was less than average while the price closed on its low. $2.50 or a stopping volume day should mark the low in my opinion.

    Untitled.png
     
  19. tech/a

    tech/a No Ordinary Duck!

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    Stopping Volume is the exact opposite.
    Volume is much greater than average.
    You would like to see close above the
    Low --- infact above the open ideally.

    Low volume and closing on the low
    Indicates sellers ar looking for buyers
    At lower prices.

    A line on a chart won't do a lot.
     
  20. ukulele

    ukulele Well-Known Member

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    I have to admit that it does at the moment look like the proverbial dropping knife. Interested to know your timeframe for this trade Wysiwyg?
     
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