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GNG - GR Engineering Services

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GR Engineering Services Limited (GNG) is an engineering consulting and contracting organisation providing high quality process engineering design and construction services to the resources and mineral processing industry.

http://www.gres.com.au
 
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Any idea when the scrip is likely to be listed ? It seems the 80% is closely held and only a small part was released for public.
 
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GNG entered into market with 89% premium and almost reaching double the issue price in two days

Promoters and Directors are almost holding 80%. 20% came through IPO.

Solid management and solid order book.

Jo Ricardo and Tony P are astute operators, long time ex WMC colleagues and JR Engineering partners.

In addition Jo is in the board of MIN . Good connection there.

Hope the heavy transaction in first two days and high price are sustainable.

Who knows GNG could be a new Worlie Parsons (WOR).
 
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Had a bit of a look at GNG and don't mind the look of them at all.

Very tightly held with 86% of the shares on issue being held by the top 20 shareholders but appears to be a very attractive company with minimal debt, lots of cash and a strong order book.

Based on 31 Dec 2010 half year profit of $10,630,057 / 150,000,000 (shares on issue) * 2 (to annualise)

= EPS of 14.17c and a P/E of 13 (on closing sp of $1.97)

This appears to be fairly attractive also, based on the P/E of their peers in the industry...
 
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Horrid result out this morning...NPAT coming in at $6.7m for the half.

The company has flagged the following as the cause:

Profitability adversely impacted by
declining margins resulting from:
 profit recognition accounting
treatment in 1H12 for current
projects
 delays in contracts being awarded
due to uncertain financial and
commodity market conditions
 increased overheads arising from
being a listed public company and
costs associated with positioning
the Company on a future growth
platform

...will be interesting to watch the price action this morning.
 
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The result was unexpected. Still, it is important to peer through the fog. Revenue was up by 12.2% and net cash grew to $51.2 million from $36 million.

The share price got pummelled, of course, ending at $1.67. Nevertheless, I think the long term prospects of this company are very good. Personally, I added to my position at $1.70. Looking at some of the analysts reports for GNG produced at the end of last year, I think they were overly optimistic. And as we all know: hell hath no fury like an analyst's estimate spurned!
 
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Gapped down on high volume. A couple more cents until it reaches an all time low. Everyone who has bought since listing is out of the money and I tried to get into the float and my broker couldn't get me stock so only insiders and clients of the lead broker got stock in the float.

Revenue may be up but profit is down so you have negative jaws, it may improve as they may have a different method of profit recognition more weighted towards finishing projects. Would need a better explanation of accounting treatment though.

Annualised pe is stil 18.5 vs 12 for forge group who have a much stronger track record and a market darling.

Could be a good one but I don't see this going up soon. I made a similair comment about QBE after the profit downgrade but it seems to be an uptrend now.
 
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Gapped down on high volume. A couple more cents until it reaches an all time low. Everyone who has bought since listing is out of the money and I tried to get into the float and my broker couldn't get me stock so only insiders and clients of the lead broker got stock in the float.

Revenue may be up but profit is down so you have negative jaws, it may improve as they may have a different method of profit recognition more weighted towards finishing projects. Would need a better explanation of accounting treatment though.

Annualised pe is stil 18.5 vs 12 for forge group who have a much stronger track record and a market darling.

Could be a good one but I don't see this going up soon. I made a similair comment about QBE after the profit downgrade but it seems to be an uptrend now.
The question is not whether the price goes up today, tomorrow, next week or next month. The question is: what is the business doing? All the signs are that is growing. And that is what you want from a company that's just listed.
 
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You need to look at price and value I love qbe and wdc. I think they are great businesses. I have followed them for years but have never owned any shares in them as the price has always been higher than my value, GNG at 1 dollar was below my value at the current price it is not
 
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You need to look at price and value I love qbe and wdc. I think they are great businesses. I have followed them for years but have never owned any shares in them as the price has always been higher than my value, GNG at 1 dollar was below my value at the current price it is not
I agree, although I would add that you need to assess value first then look at price. If you look at price first, it is likely to influence your valuation. I think one of the hardest facets of a business to value with any precision is a business' prospects. With a business with little history of earnings like GNG, it is much harder, although not impossible. I like GNG's management a lot. They are owner-operators. They don't like debt and they know what they are doing. The share price will buzz around but what matters is the fundamentals.
 

So_Cynical

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(21st-February-2012) Horrid result out this morning...NPAT coming in at $6.7m for the half.
...will be interesting to watch the price action this morning.
The SP fell off a cliff in Feb, $2 to $1.60 :eek:

(21st-February-2012) The share price got pummelled, of course, ending at $1.67. Nevertheless, I think the long term prospects of this company are very good. Personally, I added to my position at $1.70.

(22st-February-2012) The question is not whether the price goes up today, tomorrow, next week or next month. The question is: what is the business doing? All the signs are that is growing. And that is what you want from a company that's just listed.
GNG closed on Friday at $1.435 ~ you still holding Nutmeg?

These guys are sitting on 51 million in cash with almost no debt, MC of 215 mill...the last dividend only cost em 6 million....the current low could be an opportunity?
~
 

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Wow, now the price is getting interesting, I had a buy price in at $1.01 today but did not get filled. I am starting to rethink this one however in favour of something with more consistent earnings.
 

So_Cynical

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Wow, now the price is getting interesting, I had a buy price in at $1.01 today but did not get filled. I am starting to rethink this one however in favour of something with more consistent earnings.
Lets face it robusta...your more a value kinda guy than a true contrarian..perhaps stick to what your comfortable with.

:2twocents

When you post on these falling knife threads i get the feeling that your hearts not in it. :)
 
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Lets face it robusta...your more a value kinda guy than a true contrarian..perhaps stick to what your comfortable with.

:2twocents

When you post on these falling knife threads i get the feeling that your hearts not in it. :)
You are probably right, I am not interested in being contrarian for the sake of it however a high quality company that is out of favour is another matter entirely. This keeps me looking at the 52 week lows in the search of another Cochlear, Thorn Group, Data#3, Navitas or M2 Telecommunications.
 

Ves

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What source are you using to monitor the 52-week lows by the way? Never really considered that myself.
 
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What source are you using to monitor the 52-week lows by the way? Never really considered that myself.
ASX Investor Data

http://asxinvestordata.blogspot.com.au/

You get the 52 week highs and lows, day on day gainers and losers also at the end of the week you get weekly gainers and losers same monthly. There is also a whole lot more, takeovers, buybacks, director dealings, dividend yields....

I found this site on ASF but can not find the original thread to give credit where it is due. This is a invaluable resource to me, for example a couple of weeks ago I noticed BKL hitting new lows so I have had plenty of time to research and decide on a price that would temp me to hit the buy button. Same with GNG, back when it was ~$1.60 I decided to get interested when there was a margin of safety under $1.15 - $1.30 and here I am.:D

All things equal I would much rather a piece of Blackmores:2twocents
 

Ves

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ASX Investor Data

http://asxinvestordata.blogspot.com.au/

You get the 52 week highs and lows, day on day gainers and losers also at the end of the week you get weekly gainers and losers same monthly. There is also a whole lot more, takeovers, buybacks, director dealings, dividend yields....

I found this site on ASF but can not find the original thread to give credit where it is due. This is a invaluable resource to me, for example a couple of weeks ago I noticed BKL hitting new lows so I have had plenty of time to research and decide on a price that would temp me to hit the buy button. Same with GNG, back when it was ~$1.60 I decided to get interested when there was a margin of safety under $1.15 - $1.30 and here I am.:D
Thanks mate - I'll have a look.

All things equal I would much rather a piece of Blackmores:2twocents
Good company with my limited research... but looks pricey still. Perhaps it will have some short term profit troubles or similar at some point.
 
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Thanks mate - I'll have a look.


Good company with my limited research... but looks pricey still. Perhaps it will have some short term profit troubles or similar at some point.
Very good company IMO, under $21.00 would start to get interesting.
 

So_Cynical

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ASX Investor Data

http://asxinvestordata.blogspot.com.au/

You get the 52 week highs and lows, day on day gainers and losers also at the end of the week you get weekly gainers and losers same monthly. There is also a whole lot more, takeovers, buybacks, director dealings, dividend yields....
I Don't want to derail this thread but...im wondering if you noticed the 1 exceptional stock on the 52 week low list, looking again there's actually a few stand outs.
 
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I Don't want to derail this thread but...im wondering if you noticed the 1 exceptional stock on the 52 week low list, looking again there's actually a few stand outs.
REH has been on my watch list for a long time as has HHL. Neither are cheap enough for me yet.
 

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