COF - Coffey International

[zuluwarrior08]

Ive been watching this stock recently, and this week it has broken out of a trend. (Kennas I think it fits your outstanding breakout definition looking at it on a weekly chart - dutchy it fits our model of breaking descing triangle too) Looks like the sellers have been trumped. Ill post a chart this arvo unless someone beats me to it...

Can anyone tell me about this company and there current situation?

"The company believes their outlook for continuing growth in consulting and project management remains strong. Coffey continues to have several acquisition opportunities at either the advanced negotiation or due diligence stage." Commsec

I like it because it fits my plan
PE 18.18
PEG 0.48! nice
ROE last 3 yrs-27 25 and 17%
payout ratio 70-90% good dividends and still strong growth
Current assets 82m
current liabilities 39m

what do you think?

 

[Sprinter79]

One of my mates works for Coffey here in Perth. They just had a staff share offer (I think) so that could have a bit to do with it.

They will be buying up some of the smaller players in the near future, but I'll see what else I can find out about them

 

[zuluwarrior08]

They seem to be expanding organically and with takeovers, which do you think is more effective in this current craze of private equity takeovers and the like?

Thanks Sprinter

 

[sammy_k2000]

This stock seems to be unable to break out of it ssluggish form at the moment anyone know why it hasn't rebounded like the rest of the stocks?

 

[michael_selway]

This stock seems to be unable to break out of it ssluggish form at the moment anyone know why it hasn't rebounded like the rest of the stocks?

Its got ok numbers, yield is pretty good

EPS(c) PE Growth
Year Ending 30-06-08 24.9 12.9 75.4%
Year Ending 30-06-09 30.5 10.6 22.5%

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 14.2 24.9 30.5 34.3
DPS 15.0 18.4 22.0 24.5

thx

MS

 

[Tuppy]

Has anyone a good idea of the reasons behind Coffey's steady drop in share price? The volume has been fairly low, but it seems unable to rally.

Thanks https://www.aussiestockforums.com/forums/images/smilies/banghead.gif

 

[CapnBirdseye]

Has no-one noticed Coffey? Nice numbers, and steady increase on super-low volumes.

Healthy divident coming too....... I might even increase on this one too, seems to be weathering the storm nicely.

 

[gagaga]

COF has a very healthy balance sheet and earning perspective, with newly awarded contracts and expanding projects, this company is very likely to turn the table around pretty soon. From TA point of view after taking a batter for the last few months, it is consistently recovering from its lows. If you are more of a speculative person, COF is certainly worth looking at for the medium term. I currently hold COF.

 

[babka]

Hi ggg, definitely agree with you. I, too, am a long-term holder. I like the company, their management and their prospects for the future. It seems to me though that it is being a little bit overlooked by the investors and analysts. Nevermind, I am optimistic and we will get there.

 

[sukebe]

Hey Babka, do you mind elaborating on what you like about the company, its management and their future prospects?

 

[CapnBirdseye]

Hi ggg, definitely agree with you. I, too, am a long-term holder. I like the company, their management and their prospects for the future. It seems to me though that it is being a little bit overlooked by the investors and analysts. Nevermind, I am optimistic and we will get there.

Coffey haven't been overlooked, but the market is yet to regain confidence in them.

This is from memory so check to be sure, but they overstated their profits for FY 07/08 by some 40% only to have to make a correction. This was said to be due to a new accounting system.

This all said, I do think that Coffey are well placed to get through the downturn in good shape. Parts of their business are we'll placed to capitalise on the current public spending here in Australia and the uk.

 

[gagaga]

Coffey haven't been overlooked, but the market is yet to regain confidence in them.

This is from memory so check to be sure, but they overstated their profits for FY 07/08 by some 40% only to have to make a correction. This was said to be due to a new accounting system.

This all said, I do think that Coffey are well placed to get through the downturn in good shape. Parts of their business are we'll placed to capitalise on the current public spending here in Australia and the uk.

I agree...COF has experienced a period of inflated values, so comparing to other engineering firms in terms of P/E and div it certainly doesnt stand out in the crowd..but given their strong balance sheet position and recent activities, it would be very easy for them to cruise through the financial crisis...hehe, stable income stream is da KING during these days in my opinion there is a fairly good chance that they will recover to pre-crisis level in the course of next 9 months.

 

[babka]

Hi Sukebe, the two posts by CapnBirdseye and GGG basically answer your question, so that I don't need to repeat it. OK, management made a few mistakes (accounting ) and I think the company got punished by the market accordingly. I still like their future projects, they are environmetally friendly and that is a big bonus IMHO.

 

[Mofra]

Been a lack of discussion on COF for some time, obviously the "right sizing" the business announcement on 30/04/10 was not received well by the market - obviosuly the sharp fall in NP validated the falls.

As it currently stands, can anyone see value in this stock as it trades currently? PE is below 9 although I would expect it to trade at a discount to market PE the year after a difficult result. Div Yield is attractive and due to the drop in 2010 it appears management do historically distribute returns to shareholders where available. Forecasts tend to indicate an increase in profitability for 2011 & 2012 years.

Disc. - do not currently hold.

 

[Tekwrek]

Been a lack of discussion on COF for some time, obviously the "right sizing" the business announcement on 30/04/10 was not received well by the market - obviosuly the sharp fall in NP validated the falls.

As it currently stands, can anyone see value in this stock as it trades currently? PE is below 9 although I would expect it to trade at a discount to market PE the year after a difficult result. Div Yield is attractive and due to the drop in 2010 it appears management do historically distribute returns to shareholders where available. Forecasts tend to indicate an increase in profitability for 2011 & 2012 years.

Disc. - do not currently hold.

This stock has just hit a 14 year low with no sign of a slow down, does anyone see any value here or is it doomed?

 

[skc]

This stock has just hit a 14 year low with no sign of a slow down, does anyone see any value here or is it doomed?

Things aren't looking good at all. The 5 year snapshot says it all.
From H1 07 to H1 11:

Revenue went from $160m upto $400 now down to $367m
NPAT went from $7.8m upto $13.5m now down to -$4.7m
Net debt went from $47m to $104m
Interest cover from 4.5x to 1.4x

The difficulty with engineering consulting is that, the majority of your costs are headcount. You need people to bid and do the work. Chop the people you chop the revenue. There is no efficiency gains to speak of (well I suppose some if you get rid of the worst workers). In fact, you lose efficiency because chances are you still pay the same rent...

I must say up until early 2009 my impression of COF was a steady, solid growth engineering outfit...but looking at that interest cover on a tight edge, it is not impossible that they will need to do a massive captial raising sooner rather than later.

 

[McCoy Pauley]

My children used to be in a childcare centre with a child of a mother who worked for Coffey International as a fairly senior manager. I remember that she told me apart from the government division, Coffey was really struggling. Not surprised to see them struggle.

 

[Garpal Gumnut]

COF is getting hammered this morning.

Down nearly 13.5% to 0.295.

Is there bad bad news not yet announced? I was lucky and got out after it's run up earlier this year.

gg

 

[Ves]

COF is getting hammered this morning.

Down nearly 13.5% to 0.295.

Is there bad bad news not yet announced? I was lucky and got out after it's run up earlier this year.

gg

Interestingly, it added about 80% after your last post. Now look at it! Hammered is one word. Big project delays are the culprit here again. Still too early for mining services stocks for mine - especially turn around stories that had mountains of problems to sort out. The time is coming though for those who want some in their portfolio.

 

[Garpal Gumnut]

Sorry for the late reply Ves. I picked COF in the competition this month, as it is a good recovery stock, with large movements in the short term, both up and down.

The RSI and a rising price at the end of October boded well and it has since steadily rose. It appears that 25c is providing some support.

I enclose a 3 month and a 12 month chart.

and

There seems some resistance atm to it getting in to the 35-40c area.

gg