Augean Share Discussion Threads

[cyberian] 13/4/2008 14:59

...5678....who do we appreciate? Is that the question "The Gulpster"....or am I missing a clue? Looks as though there may be a suggestion of some serious interest by one party or another. In these markets it is a reasonable time to spring a move, perhaps.

[azalea] 11/4/2008 14:08

Another little tick up today. Apart from an 'approach' being announced, even an increase by a major holder could provide an indicator as to what at least one of the big boys might be hearing.Certainly the share price is going the right way whilst the market is falling!

[chrisdgb] 11/4/2008 11:30

very squeezy this stock, wonder if there will be any news????????

[cyberian] 10/4/2008 16:47

A trade earlier this week at 71p for approx. £75,000 block of shares had me intrigued as that is a fair number in this company. The Irish party holds about 27% and the balance sheet is pretty clean with a further slug of goodwill written-off recently...believe the net asset value was around 156p. The company is in a good sector for growth and improvement in margins provided the management have the expertise and/or joint venture partners to add value. Believe they have that in the latter and just maybe the Dutch or Irish parties involved with AUG will want a larger involvement...guess any bid would have to be agreed and the price attractive in view of the growth opportunities ahead. Time will tell but as stated by other poster the Euro is strong and there are other regulatory benefits which could attract a buyer at this weak time in the general markets.

[azalea] 10/4/2008 15:48

Ah, good thinking; there might be a grain of truth in that. Yes, the euro has strengthened circa 10% since last summer's hols. I see too the ECB has not cut its rate today.

[lbo] 10/4/2008 15:05

With Sterling so weak versus Euro it could be an opportune time for the Irish to make the bid IMHO

[azalea] 10/4/2008 14:36

Hmmn, up 8% on a volume of a mere 60k - evenly split. Is there something in the wind, I have to wonder?

[iomhere] 01/4/2008 11:32

It is April 1st. If coucils cannot afford to recycle then more waste goes to landfill and so do the councils' tax bills. Either the councils see sense and spend more on recycling to reap a later reward or the purpose of the tax fails and the government thinks of other ways of enforcing recycling.

[azalea] 01/4/2008 11:26

The tax councils pay to dump rubbish in landfill sites is rising sharply - by £8 to £32 per ton, and expected to reach £50 a ton over the next three years. Although the UK has decreased the amount being dumped, it is facing EU fines if it does not see further reductions. A Local government Association spokesman said higher landfill taxes meant councils could not afford new recycling schemes.

[liquid assets] 27/3/2008 12:22

just a poodle by the end of play ! nice to see a few buyers around

[azalea] 26/3/2008 17:44

At the end of the day not such a dog after all!

[liquid assets] 26/3/2008 12:52

what a dog - sorry, maybe it's gone bust

[azalea] 20/3/2008 16:17

Given that circa 89% of the stock in issue is already in major shareholders hands, I doubt very much that anyone is stake building beyond that, however the moment a further notable increase is declared then hold tight.

[deep powder] 20/3/2008 13:34

Just bought in to start a holding, looks an interesting situation. Stock is bid in the market in size, not sure who is building a stake..

[azalea] 19/3/2008 11:14

You are quite right to question any conclusion the IC comes to, it is never 100% right. The IC "good value" stems from AUG's NAV, its mix of landfill and treatment of hazardous waste and the increasing EU legislation that the government will have to enforce sooner than later. That said, the IC did mention 151 Ltd stake and said that the low share price could tempt it into action. I agree and until and unless the major holders sell and desert, I am going to continue to stay in with my modest holding. At this level, there has to be far more upside than down.

[liquid assets] 19/3/2008 10:20

azalea - no disrespect to the IC but what do they know really ? Not known as the 'chronic investor' for nothing ! Fact unfortunately is that if it is such value, where is the approach ? I am sure the void space does have value and I like the business area they are in, it just seems to all be taking a v long time to get going. i am confident an approach can come, but in the absence of buyers, it gets walked lower. All of a sudden £1 for instance looks a pretty reasonable offer. just my current thoughts and i am long (just a bit painful).

[azalea] 19/3/2008 08:36

IC says "long term good value". I do not think the long term institutional holders (60%)will be willing to sell their shares @ £1.

[liquid assets] 18/3/2008 19:14

what a dog - been long for too long - hanging on and hoping - wish i'd have stopped out. this is getting tiring..no buyers..so down and down it goes. yawn. get to thinking, it gets manipulated lower maybe to allow the strike at some bull price - £1 is a nice round number.

[azalea] 12/3/2008 10:22

I shall be interested to read what the IC has to say. If the NAV is even 120p, then the share price has to be undervalued. As I said a few weeks ago, I think 151 Ltd will make its move this year. After all, the share price has barely been lower since it bought at a price 45% high than it is today and with the likelyhood of AUG making further progress, there will hardly be a better time to make its move!

[cyberian] 12/3/2008 09:04

Net asset value is circa 127p after non cash accounting write-off, which makes the numbers/balance sheet looking quite conservative. The cash-flow is very strong and the company appears to tick all the right boxes on the critical regulatory front. One51 Ltd have loads of cash and capacity to make a move at any time and remember that they secured their initial investment of over 26% on weakness after a profits warning. AUG is now in much better shape all round so they may make a move once again now that the goodwill etc. has been sorted.

[cerrito] 11/3/2008 18:25

I continue to hold for the reasons you give azalea but not sure if I will buy more...at least we have gone a few months without a management change.

[azalea] 11/3/2008 17:24

Not long ago, for no apparent reason the share price dropped a full 10p in one day and recovered in a less than 2 weeks. With today's fall of 5.75p in reaction from various quarters to the FY results, it will be interesting to see how the share price copes this time.

I am not selling for the following reasons:-

1. A very high percentage of shares in major holders hands.

2. 151 Ltd 26.89% stake has bid potential.

3. The high probability that business can only improve.

4. The enforcement of EU regulations will favour AUG.

[lbo] 11/3/2008 12:40

The UK hazardous waste business, Augean, in which One51 has a 26.89% stake,
has released full-year results for 2007. Revenue increased 5% to £22.6m,
operating profit was up 8% to £4.9m and EPS was up 2% to 5.7p. Revenue was
slightly behind analysts' expectations of £25.5m, but EPS was ahead of the
expected 5.6p. Augean moved the business further into the treatment market
through the acquisitions of Chemical Recoveries and Hitech in 2007 and
commented that it was in a good position to take advantage of any further deals
that may be appropriate going into 2008. It also commented that it is placing more
emphasis on the treatment of waste, an area where One51 is focussed and where
the growth opportunities are greater than in just pure landfill.
Revenue for the Treatment division was £10.5m, with operating profit of £1.5m.
The acquisition of Hitech brought the group a fully permitted hazardous waste
treatment and recycling facility in Glasgow and an industrial services operation in
the Ellesmere Port in the northwest of England, while Chemical Recoveries
expanded the group's waste processing capacity. Aside from a landfill division,
Augean also has the newly-created Terramundo division, a treatment and recycling
facility for contaminated soils.
In terms of outlook, the company notes that the review of the UK Waste Strategy
in 2007 further changes the way in which the UK manages waste, with a real focus
on the mechanisms to re-use, recycle or recover the value of waste in order to
mitigate the exhaustion of natural resources. Augean states that it has been
developing its business strategy to strategically place itself in this emerging
environmental sector.