Augean Share Discussion Threads

[lbo] 11/5/2010 22:35

LONDON-A sharp rise in U.K. industrial production in March, boosted in part by a weaker pound, could lead to an upward revision in first-quarter economic growth, data showed Tuesday.

The Office for National Statistics said manufacturing output rose 2.3% on a month-to-month basis in March-the biggest increase since July 2002, and higher than a revised 1.4% monthly gain in February. Manufacturing output grew 3.3% in March from a year earlier, the largest rise since October 2006 and up from a 1.3% gain a month earlier.

The ONS said this result could mean gross domestic product growth was higher in the first quarter than previously estimated. The agency said it has "assessed the impact of GDP growth of latest production output data and estimates that growth in GDP between the fourth quarter of 2009 and the first quarter of 2010 would be revised up by about 0.1 percentage points

[half a scargill] 30/4/2010 23:36

Nice bit of volume again today. Someone is obviously interested, although would be nice to get some consistent action.

Still holding with an average of 27p.

[lbo] 25/4/2010 23:01

'Foreign vultures' circle UK companies



COLIN McLean, the Edinburgh fund manager who warned about the risks to HBOS a year before its takeover by Lloyds, has warned that foreign vultures are set to swoop on a string of UK industrial firms this year. McLean said the UK industrial sector is ripe for takeover as it has a number of companies which have continued to perform well in the recession but appear relatively cheap to foreign investors due to the devaluation of the pound.
He predicts that Shanks, the FTSE 250 waste industrial firm which recently rebuffed an approach from Carlyle Group, is likely to attract further bids

[lbo] 07/4/2010 00:42

UK construction activity expands

[skyship] 26/3/2010 17:44

AC - Very good...

[augustus caesar] 26/3/2010 17:21

The Edison note was pure verbiage. "Planning to Deliver" was particularly good.

"Following some executive management turbulence in the early years...." was also good.

This is your Captain speaking. We are currently encountering a little turbulence. Nothing to worry about. As a precaution, we've just dumped £100m of shareholder's funds overboard but cabin crew will come round with a collecting box in a moment so we should be alright. And we're gonna make a whole million pounds sometime in the future beyond the horizon. Toodle pip!

[contrarian2investor] 26/3/2010 14:26

LBO,

What is your view of the stock LBO?

AUG have been "Planning to Deliver" since its IPO and thus far investor had made nothing but losses!

"Planning to Deliver" sounds like a Labour/Conservative/Lib Dem manifesto or should I say a Greek government agenda item with regards to their fiscal policy.

c2i

[lbo] 26/3/2010 14:02

Mar 26th 2010 - Edison Investment Research today published a report on Augean(AUG.L, LSE:AUG) entitled "Planning To Deliver". In summary, the report says:

Augean has undergone a period of significant change since listing on AIM in 2004. Regulations have altered the manner in which hazardous waste is handled and Augean's blend of Treatment and Landfill leaves it well positioned. We feel that with the group's asset base now fully invested and an increasing number of new market opportunities being pursued, the current valuation is over-discounting for adverse market conditions. If any of the new strategic markets are successful, we believe that there is significant upside potential to the valuation

[skyship] 26/3/2010 13:15

I managed to buy back in for a few @ 25p this morning when I saw the share price rising - then rather belatedly comes the good news of the Director Purchase - surely should have been an RNS at the open.

Half a Scargill suggests 100k is rather a small purchase. I see it as a pretty major commitment and a trend-changing event.

[contrarian2investor] 26/3/2010 11:05

azalea,

Are you invested in AUG, if so for how?

I had been waiting to make my initial purchase below 22p but the share price bounced after touching 23p.

Volume is up and yes the Mcdowell's purchase "appears" to be well timed doesn't it.

c2i

[azalea] 26/3/2010 09:49

Well, you simply never can tell. After mediocre results the share price takes off - up 20%. So I have to ask, are there at long last whispers of a bid in the air and wasn't Chairman Mcdowell lucky with his recent 100k buy?

P.S. Will the company make an announcement regarding this early morning rise and on a Friday of all days; usually a day reserved for burying bad news?

[half a scargill] 26/3/2010 09:10

Small director purchase.

Hopefully a floor to the price here - this could bounce quite strongly on bid speculation/2nd half profit forecasts.

Added.

[lbo] 25/3/2010 23:17

The waste management group Shanks attempted a comeback as bargain hunters piled in last night.

The stock suffered a bruising 15 per cent decline after ending takeover talks with the private equity group Carlyle. The resulting weakness left Shanks trading on a significant discount to both to its own historical multiples and the wider utilities sector, prompting Goldman Sachs to weigh in with some words of support. Moving the stock to "buy", the broker said that not only was the stock cheap on valuation grounds, but that the company, with its exposure to the non-municipal waste business, which responds to industrial production cycles, was well placed to capitalise on the improvement in the economy.

"Our economists expect a rebound in industrial activity in Shanks' key markets (Benelux and the UK), which should drive strong earnings growth at the company," the broker said, abandoning its "neutral" stance. "We would also not rule out the possibility of further [mergers and acquisitions] activity in the next 12 months," Goldman added, helping Shanks to rebound 6.2p to 108.4p.

[icarus4123] 25/3/2010 21:05

This will move north tomorrow.

[lbo] 25/3/2010 09:43

Chancellor extends Landfill Tax escalator until 2014

[value viper] 24/3/2010 16:59

? u guys must be short then ?!

[simon gordon] 24/3/2010 16:54

Augustus,

You are right, with this management team £15m to £18m looks right. £25m would be a take out price.

Share could visit 10p.

If no one wants to buy them they could end up kaput.

It looks a value trap.

[value viper] 24/3/2010 16:40

equity mkt cap at close today is circa £24 million.
what do we reckon the void space is worth in isolation ?

[augustus caesar] 24/3/2010 16:33

It makes £2m one year. Loses £20m the next. Makes £3m then loses £55m.

And they ask you to believe that guff about returning to profitability in the second half of the year ???? Even if they did, which they won't, I'd watch out for the following year if previous form is anything to go by.

On the surface, it does look like a small trophy asset someone would want. The trouble is that when you get into the books, you'd see they've never really managed to get this business off the ground and don't have the management skills to get themselves out of the hole they're in because they is still digging away.

I'd value it at about £15m-£18m, certainly no more under this management.

I'd like to see one of the Directors come on here and bet his house on the return to profitability in the second half which is only three months away.

[azalea] 24/3/2010 16:31

A few healthy buys today suggest confidence either in a recovery into to profits and/or hopes of a bid.

[simon gordon] 24/3/2010 15:46

£35m for AUG still looks high.

£3m is the best they've earned in one year.

I think it is worth £25m.