Camco International Share Discussion Threads

[crawford] 23/2/2011 17:36

Shrewd_n_Sharp,
surely the net asset value wouldn't change as accrued balances would become cash on the balance sheet - both are assets...

Question 2. interesting point, not sure.

Not a shareholder but interested after results.

[shrewd_n_sharp] 23/2/2011 15:22

I've been looking at this stock as on the face of it the net assets position looks healthy. It is well-pumped by Peel Hunt, but naturally being their covering broker one would expect that. Clearly sales are rising and that's healthy and they turned a profit which is also healthy.

A couple of issues and questions for me though:

1. Despite a turn to profit the cash position has fallen from 28,500,000.00 in 2009 to 12,400,000.00. They are booking the profits within 2.5 years before the cash arrives. This explains the EPS of 4.80p yet a Cashflow PS of -7.89p.
2. Operating expenditure alone for 2010 was 14,600,000, which now exceeds the cash position.
3. The final report explains some of the calculation for net assets, of which are mainly project as yet unpaid for:

"These are projects where our work is significantly complete and we're awaiting delivery. This net fair value accrued balance of EUR31.7m is a proxy for future cash and will shortly convert to cash as these projects deliver carbon credits, the majority of which are scheduled within the next 2.5 years. "

The difficulty in analysing these accounts is knowing what inflows are expected to be paid in 2011.

Am I right in saying that:

1. The net asset value will have to come down as these accrued balances from the net assets are translated into hard cash as the payments are made?
2. If these payments are over 2.5 years and most of that is backloaded then a share dilution or debt finance to cover the cash shortfall (if opex remains the same or more) is highly likely next year?

*. Of course if those accrued balances are front loaded without a large increase in opex then the dilution / loan isn't required

[humbugg] 23/2/2011 08:31

just took another 40k at bargain prices one hopes.
;-)

[ashtree2] 23/2/2011 08:25

Just bought at 15.95p seems cheap when you see the excellent results.

[battlebus2] 23/2/2011 08:11

More selling pressure again this morning.

[eagle12357] 23/2/2011 07:45

There was mention of a Analysts meeting this morning, anyone know more about this ? Broker Upgrades ?

[divinausa1] 22/2/2011 22:13

Dr you just woke up? that was this mornings news :0

[battlebus2] 22/2/2011 17:45

Good to see a little pick up towards the close as we lose some profit takers.

[philjeans] 22/2/2011 17:25

Picked up another 50k today - looking very good for a nice sustained rise here.

[dr contrarian] 22/2/2011 16:41

Peel Hunt comment - fair value 37p - target price 30p.

[aishah] 22/2/2011 16:40

Camco: Shares soar as Carbon emissions group moves into black

[ch1ck] 22/2/2011 16:37

The Results are now out and the share price move has confirmed my sentiment posted on the 4 Feb 2011

"Once the overhang has cleared and the news is in the market place the shares will rocket."

This is just the start. The business is not simple to understand and has confused a few investors hence the recent posts, but the profit and results speak for themselves.

well done to those who bought at the recent lows and safe trading to the holders of this stock

[humbugg] 22/2/2011 14:47

thanks for that ikos.

[liarspoker] 22/2/2011 13:10

Nice article but 28p is a bit lower than my valuation of CAO ( though like you say price target should increase after these results ).

For starters net working capital comes in at 20.39p per share. If you add in the fixed investments you get 25.96p per share. So that more or less equals TNAV depending on spot prices. It's a profitable business and is likely to be profitable over the near/medium future due to regulation in Asia, USA and Australia. Worth a lot more than 26p/28p for a private buyer imo.

[hemel] 22/2/2011 12:31

I think that a lot of buys are showing as sells on the Trades. I bought @ 16.05 and it shows as a sell @ 16

[dr contrarian] 22/2/2011 11:56

This article suggests fair value of 28p, after these results target price should increase -

[daicaprice] 22/2/2011 11:56

Can easily see close to 20p by Friday, great figures that need to be circulated.

DC

[divinausa1] 22/2/2011 11:51

shame the results came out on the worse market day for a long while I think we would of been alot higher, but with press and days to come i think we shall see some nice gains here...

afterall a 10.1 mln euros profit and market cap just 28m something not quite right....

[envirovision] 22/2/2011 08:25

Camco intends to issue a further 3,164,840 new ordinary shares in the Company to directors and employees as part of the Camco International Limited Long Term Incentive Plan