By David Press on
6/2/2011 9:38 PM
Hansen Technologies Ltd's ( HSN-ASX) management team announced significant profit upgrades for the 2011 financial year earlier this week, which has prompted me to update my analysis of the company which should make for some interesting reading.
Hansen this week revealed internal expectations for full year EBITDA of approximately $19.5m on revenues of around $57m, and an EBIT of approximately $17m. Based on an estimated tax rate of around 22% (a little conservative and may come in slightly lower), I'm anticipating a NPAT somewhere in the $13m region, a very impressive 20% increase on last years results.
As I wrote in my last blog on Hansen Technologies, the company's revenues have been hit by the persistently high value of the Australian dollar, mostly...
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By David Press on
4/5/2011 8:26 PM
Having read QBE's ( QBE-ASX) AGM presentation today, I have to say that I feel pretty comfortable with my decision to hold and buy more of this stock in the last 12 months or so. Despite the fact the share price has underperformed significantly compared to the overall market, the underlying performance of the insurance business has been quite strong, giving me the feeling that at current share prices, this company ticks the boxes of a quality value investment.
To understand why I think QBE offers good value, you need to understand the business and how they derive a profit. To put it simply, QBE derives income from two main sources. The first is the insurance profit they make on writing insurance, that is, the difference between insurance premiums received and insurance claims...
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By David Press on
3/31/2011 5:27 PM
It would appear that for the second time in recent years, institutional investors are looking to make board changes at RHG (previously Rams Home Loans-pre GFC). Steve Johnson and members of the Intelligent Investor group failed in a similar attempt 18 months ago, only to have a group of institutional investors (holding 8.4% of the company) led by Karl Siegling and Geoff Wilson make a second attempt as announced today.
Today's announcement (attached to a substantial holding disclosure) stated that the group intends to requisition the removal of two existing directors (Greg Jones and John McGuigan) and replace them with three new directors (Malcolm McComas, Gabriel Radzyminski and Paul Jensen). Additionally, the announcement details the group's intent to ensure the company remains a listed entity and to distribute surplus cash as dividends (franked wherever possible). The existing share buy-back proposal...
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By David Press on
3/28/2011 10:18 PM
Nido Petroleum ( NDO-ASX) today announced the approval from the Philippines DOE for their upcoming drilling target, Gindara-1. I've noted Gindara as a possible company making prospect a number of times and I now feel that at current prices, Nido may be offering traders and opportunity for a buy early, sell before spud play, and for longer term speculators, an opportunity for serious share price gains on the back of a successful oil find.
Nido and JV partners, Shell and Kairiki are targeting a possible 1 billion barrels of oil at Gindara, with the drill date around May 2011. Having attained approval for the well, as well as securing the “Atwood Falcon” rig, Nido are finalising the required third party logistics and planning and suggest the rig should arrive on site around mid...
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By David Press on
3/22/2011 4:21 PM
Strike Energy ( STX-ASX) announced late last week that they have increased the company's interest in the Louise gas/condensate field and the Eaglewood JV. Strike have spent US$3.75m on increasing their interest in the Louise fields to 40% (from 30%), increasing net production for Strike to 2MMcfe/day (revenue of approximately $350 000 per month at current prices). The deal also increases the interest in the Eaglewood JV, giving strike a 40% interest in future discoveries.
Having recently sold it's Rayburn and Mesquite assets ( blog here), STX are flush with cash (around $20m before the deal) and are embarking...
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By David Press on
3/11/2011 11:33 AM
In coming days, Australian investors in BHP ( BHP-ASX) will be receiving paperwork detailing the company's recently announced, off-market share buy back. With so many 'Mum and Dad' investors holding BHP, and the technical nature of the buy back being a little difficult to understand, I thought it might be helpful to outline the details as simply as possible for anyone struggling to get their head around it and make their decision a little easier.
In short, investors can opt to sell their shares (or a portion of them) back to BHP. The offer will be at a discount to the trading price of shares on the market, which begs the question, why would you sell? Quite simply, it is in the make up of the payment that you find the answer. A very small proportion of the payment will...
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By David Press on
3/8/2011 4:10 PM
Having made my way through a number of half yearly reports in recent weeks, Hansen Technologies Ltd's ( HSN-ASX) performance is a real stand out and sets the company up for a fantastic full year result.
I discussed Hansen in the latter part of 2010 ( blog here) and formed the opinion that the company looked to be trading at a slight discount to it's intrinsic value. Having continued my research into the roll out of smart meters in the US and the technology required, I felt that due to Hansen's product and service offerings and market position in the US (particularly after the NirvanaSoft acquisition), the company was poised for strong growth in coming years. With an exceptionally strong balance sheet and apparently very capable management team, I took my first position in HSN in the low to mid 70c range. ...
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By David Press on
3/3/2011 3:19 PM
 Management of Strike Energy ( STX-ASX) this week announced disappointing results from their promising Steindorf-1 well on the Gulf Coast, USA. As I discussed in a recent blog, having sold the majority of their producing assets in the US, Strike's management and share holders were no doubt excited and hopeful that reserves and cash flow would quickly be replaced by the latest well tested by the joint venture. Unfortunately it is not to be and the disappointment was evident in a sharp drop in the share price back to the high teens. In an attempt to put a positive spin on the disappointing results, management...
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By David Press on
1/19/2011 10:07 PM
Strike Energy ( STX-ASX) announced early this week, the sale of a number of their onshore gas producing assets in the USA for $21.7 USD. This strategic move comes as little surprise to those who paid particular attention to the company's AGM presentation, at which the management team hinted at a change in the company's strategy. Managing director, Simon Ashton, believes the sale now gives Strike Energy a 'war chest' of cash to explore it's high impact US and Australian targets and is a clear indication that STX's management prefer to unlock value than dilute share holders holdings with capital raising into low share prices.
According to Strike's public announcement, the sale of their Rayburn and Mesquite interests has netted the company $21.7m USD and equates to $2.63 USD per Mcfe of 1P reserves. The cash will be used to pay down existing debt ($5.8m USD) and close the remaining open hedging positions. The net result will leave STX with cash of just over $20m on the balance sheet, and exposure to their remaining interests, the recent Louise discovery, Steindorf (to be tested early February) and the suspended Muegge well. Additional to the existing and developing US assets, Strike Energy have large prospective CSG acreage in the Southern Cooper Basin and the FutureGas project, as well as their offshore Baniyas project in the north of WA. At a market capitalisation of around $60m at current share prices, it would appear STX offers investors large potential upside with limited downside risk. ...
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By David Press on
1/12/2011 2:20 AM
Australian listed gold exploration junior, Carbine Resources Limited ( CRB-ASX) has yet to define a resource at its West African gold permits in Burkina Faso, yet is already creating excitement amongst management and shareholders alike. Many of whom have ridden a wave of success with sister company, Ampella Mining Limited( AMX-ASX), also with projects in Burkina Faso, and will be looking for similar success with Carbine Resources.
Carbine and Ampella share more than just members of their management teams. CRB came to an agreement with AMX to earn in to AMX's Madougou project in late 2009. The terms of the deal included payment of $3m over 3 years to earn 51%, a further $2m for 70% and funding of pre-feasibility over 12 months for 80%, after which the project remains a JV between the two companies. Initially the project comprised 2 permits and land area of 465 km², however since earning into the Madougou project, Carbine has proceeded to significantly increase land holdings to 7 permits and 1327 km². The five new permits are not part of the Ampella JV and are held by Carbine only. ...
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