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ASZ, ASG GROUP LIMITED
grevillia
post Posted: Apr 8 2013, 10:12 AM
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In Reply To: grevillia's post @ Apr 6 2013, 11:15 AM

Confusing signals from the company.
Great promise of continuing as a going concern after cost-cutting - if you believe them.
Talk of throwing in the towel in takeover.

We are outsiders in the dark.

 
OZGAZ
post Posted: Apr 7 2013, 03:45 PM
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In Reply To: grevillia's post @ Apr 6 2013, 11:15 AM

Yep missed the boat on that one grevillia when it was in the 50's and I was tempted to dip a toe..alas I didn't follow thru and look at the SP now !

Cheers

Ozgaz



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Smile while TRADING it's only money... :)

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grevillia
post Posted: Apr 6 2013, 11:15 AM
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In Reply To: OZGAZ's post @ Apr 5 2013, 07:25 PM

A bit like UXC's stay in the doghouse before recovering.

 
OZGAZ
post Posted: Apr 5 2013, 07:25 PM
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In Reply To: nebo's post @ Apr 5 2013, 05:00 PM

nebo, also in the back of my mind is the takeover proposal which has obviously been downgraded in line with their previous financial report which was not pretty. I did find interesting the announcement they made in which they stated why they thought the takeover price put forward by Lockheed Martin was undervalued - some value add comments which made sense especially with regards to ongoing contracts and also the potential of the cloud environment....I'll see how it opens on Monday as I may just take profit

Cheers

Ozgaz



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Smile while TRADING it's only money... :)

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nebo
post Posted: Apr 5 2013, 05:00 PM
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In Reply To: OZGAZ's post @ Apr 5 2013, 03:04 PM

Yes is interesting situation,
Potential suitors? is half price compared to last year if you are taking it out.
I have been waiting for full year account to see how the new business is travelling, to reacquire my little stake, the cap raising saw me sell out.
The volume the last 6 moths to a year is higher than average, (lots of selling) but correspondingly there has been lots of buying.
No substantial notices though. you would think if people are running rulers over it, they would have a small parcel up their sleeve.
It dosent fit my logic, not buying when is cheap if you intend to bid.
I do like the industry generally and what they are trying to achieve is probably the right thing but they dont seem to send the right messages to the market.
I hope todays bounce does well for you Oz.
regards,
Nebo


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OZGAZ
post Posted: Apr 5 2013, 03:04 PM
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Bought in on todays lows...for once I think I got it right. Nice bounce this afternoon..

Cheers

Ozgaz



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Smile while TRADING it's only money... :)
 

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mcart117
post Posted: Feb 28 2013, 07:32 PM
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I'm often tempted in stocks with a high DY, but apart from the odd exception (such as TLS) they always fall flat on their face. When the DY goes crazy, it usually means the market believes the dividend is about to disappear. I have to say I find the Comsec Earnings and Dividends Forecast (cents per share) often very misleading because by the time their estimates have been updated, the stock has already dived. ASZ is an example of this, where forecast EPS and dividends make the prospective DY look great. But from their half yearly results:

QUOTE
The adjusted underlying EBITDA was $12.80 million before the one-off impact of $15.60 million of write-downs,
driven by the company’s recent strategic review and realignment of its business development approach and
cost structure. After the write-downs ASG reported EBITDA of -$2.79 million, compared with EBITDA of $14.36
million a year ago. As a result, the company will not pay an interim dividend.


So the market was right, and the "prospective" DY an illusion.


 
pkay
post Posted: Dec 11 2012, 07:10 PM
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In Reply To: nipper's post @ Dec 6 2012, 07:25 AM

QUOTE
It would appear ASG Group sits in the latter group and that is a big No-No.
(Wish I had known this earlier).


Wish I'd known earlier too. Looked like such a promising stock once upon a time.



 
nipper
post Posted: Dec 6 2012, 07:25 AM
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Avoid The Torpedoes! By Rudi Filapek-Vandyck, Editor FNArena


QUOTE
.. Lastly, a special mention has to go out to Perth-based IT developer and services provider ASG Group (ASZ). Earlier in the year I used this stock as an example of how dividend support can be used as an alternative strategy for investors. Of course, such strategies are only valid for as long as the company doesn't cook up any nasty surprises. Unfortunately, ASG Group did exactly that during the August reporting season. Making matters far worse, management turned itself into the market's laughing stock when it tried to cover up what had gone wrong during the year by almost literally trying to rewrite history.

Apart from several low quality adjustments to its accounts for the year, ASG Group management included in its so-called "normalised earnings" revenues and profits that would have been booked if certain members of staff had not been redeployed in developing the company's cloud service during the year. It led to a special mention of the company, and its spurious reporting, in a dedicated report by Octa Phillip on questionable practices that had been observed during the August reporting season, with jokes such as "ASG- if we had invented the iPod we'd be called Apple".

Here's one direct quote from that report: "In a category all of its own, ASG, a stock not exactly noted for straightforward accounting at the best of times, puzzled the investment community with its attempt at rewriting history with a new definition of normalised EBITDA."

As it turned out, investors did not take all of this lightly and ASG Group shares have proved one of the share market's torpedoes this year. Loss of confidence is much more difficult to reverse than losing it in the first place. I apologise for using ASG Group as an example for what can be, otherwise, a valid investment strategy. I also remain very firm in my general views: investing in equities is risky and challenging at the best of times. Investors are better off not taking on board the extra risks that open up when company directors put their own financial rewards first or when they turn to creativity to cover up what went wrong during the year.

It would appear ASG Group sits in the latter group and that is a big No-No. (Wish I had known this earlier).






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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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pkay
post Posted: Nov 27 2012, 01:51 PM
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In Reply To: grevillia's post @ Nov 26 2012, 03:55 PM

I just applied based on the acceptance form. Normally if there is a limit of some sort it is mentioned on the form. It should have said "Number of additional shares applied for, being not more than xxx", instead of "Number of additional shares applied for:"

Ofcourse, the question still remains: Why have a limit? Why not just have a scale back policy?

And then there is the share price action since the announcement. I don't usually subscribe to conspiracy theories but this is a stock that can be easily manipulated by the big boys. Something for ASIC to look into imo.


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