Wogen Share Discussion Threads

[topinfo] 29/9/2009 09:39

DJ Wogen Trading Suspended On AIM Pending Announcement >WGN.LN

LONDON (Dow Jones)--The London Stock Exchange said Tuesday that at the request of the company trading on AIM for the Ordinary shares of Wogen PLC (WGN.LN) has been temporarily suspended from 0600 GMT pending an announcement.

-By London Bureau, Dow Jones Newswires; Contact Ian Walker; [phone]; [e-mail]

(END) Dow Jones Newswires

[jouster] 15/1/2009 12:23

Please remember these results are up to the end of September, these are truly terrible figures as the first 9 months of last year were very buoyant in the Metals they trade, the real collapse came after and stock values halved.

This statement made me giggle "As prices stabilise into 2009, opportunities in the spot markets will increase. This environment plays well to Wogen's trading expertise, breadth of relationships and strong balance sheet. We intend to be ready to capitalise on these opportunities in 2009 as they arise."

They really capitalised on the great trading conditions last year didnt they, the Management ought to be shot because they certainly wont die on their own swords.

[jonwig] 15/1/2009 11:24

OXMAN - I suppose the writedowns were a lot more than they warned about earlier.

MCap is £7.0m, and net assets (all tangible) £26.6m. More than once they refer to their 'strong balance sheet'.

But what worries me a bit is the receivables of £17.8m ... is that secure, or should there be provisions?
Also, inventories of £41.9m and debt of £34.0m ... they don't have anything to say about any debt covenants, which might be fragile against further writedowns.

I'm inclined to agree that they will be a geared play on economic recovery, but buying now would be dead money. (Last time I wrote that about a stock, it bounced.)

[its the oxman] 15/1/2009 10:00

awful results and no div - recovery play one day perhaps but not yet

[jonwig] 25/10/2008 09:46

Thanks, Skyracer.
The annual divi cost £3.3m for the last FY, so that would be a reasonable assumption.
In theory, of course, they should be able to profit whatever the direction of the market they are making, but I seem to remember they came badly unstuck shortly after IPO.

Anyway, I'm very unlikely to be buying them!

[skyracer] 25/10/2008 08:23

Hi Jonwig,

The balance sheet is strong in the sense that even if their inventory value were halved due to a write down it is still equal to their market cap and is turned over 5 times in a year so although profitability will be hit there shouldnt be a problem with access to cash. IMO the dividend yield now at 15% is far too high and should be prudently cut to 7.5% or 5% with the statement that as soon as market conditions permit the higher dividend will be restored.

[jonwig] 24/10/2008 08:56

Thanks for that, leading.
The sentence would be:

The recent uncertainties in the global economy have had an impact on the markets in which the Company trades and may consequently have an effect on our reported results for the year.

I see in the H1 figures their provisions for impairment of trade receivables are tiny (£20,000 out of £19m).
Apart from China business, they could well be trading against hedge funds who just might not be able to pay up.

[leading] 24/10/2008 08:16

The result looks fine, but the statement appears to suggest that they are not sure they will be paid by all of their counterparties.

If there are bad debts, they will impact the result.

I suppose its due to metals prices falling, so customers try & wriggle out of their commitments.

I guess we will find out how easy it is for a western company to enforce a contract in China.

[jonwig] 24/10/2008 07:40

A positive trading update for the full year to 30/09.

I'm a bit surprised that they can describe their balance sheet as 'strong' though, when inventories were £44.4m at 31/03 and will have to be written down significantly - unless they've traded them all away?

But if they have doubled up H1 performance, eps will be about 10p and divi nearly 5p. I just can't believe it!

Anyone care to comment?

[davidosh] 25/9/2008 15:00

What is happening today then ?

[mathisvale] 18/6/2008 10:47

Breakout chances - if it closes above 90p, then good; if it closes above 100p, then near certainty

[cottonpickers] 18/6/2008 10:20

About to breakout??? anyone??

[myopia] 10/6/2008 19:09

I suppose higher operating expenses might be just caused by higher bonuses to traders. Whatever it is, like timanglin says, hold and enjoy the divi from what look like a pretty canny operator.

[timanglin] 10/6/2008 14:38

yes Skyracer- you are correct about the finance expenses and this really should be explained, however the operating costs increase has generated a significant increase in profit, at this early stage of looking at the trajectory it looks as if the trajectory is upwards, the next set of trading statements will be interesting... I am a holder and enjoying the divi. DYOR.

[skyracer] 10/6/2008 10:43

Hmm, this is a satisfactory performance, nothing more. Operating and finance expenses have increased and the eps is flattered by reduced tax charge.

[cottonpickers] 10/6/2008 08:42

Wogen H1 pretax profit 3.14 mln pounds vs 2.8 mln; says confident on H2 trading




LONDON (Thomson Financial) - Wogen Plc. reported a 13.3 percent rise in its
first-half pretax profit, helped by a 6.3 percent increase in sales.
The speciality metals and minerals trader posted a pretax profit of 3.14
million pounds for the six months to March 31, from 2.78 million pounds the year
earlier. Revenue rose to 112.68 million pounds for the period from 106.00
million pounds a year ago.
Wogen said it looks forward to the second half of the financial year with
confidence.

[mathisvale] 04/5/2008 08:19

I have the feeling that this co is off most investor's radar. The profits drop just after its IPO also upset a few people. Nevertheless, this is a well managed growing co, with management who are used to trading through tough times.

The co provides a safe high yielding dividend and is also trading not far from its net asset value.

IMO this share price is going to continue to slumber along for a while until profits suddenly shoot up and takes us all (?) by surprise. Then everyone and his dog will want to climb aboard.

By then I should have a large holding and will be starting to unload

[stevemarkus] 14/3/2008 08:49

Hi cottonpickers. Yes, good news and it bodes well for Ambrian I would think, as they're in a similar line of business. Nice dividend coming up soon as well, 4p a share I think.

Cheers,
Steve.

[cottonpickers] 13/3/2008 13:45

Morning all. Looking like some positive news amongst all this ftse gloom !

[stevemarkus] 18/1/2008 09:01

Hi Masurengut. They have had a bit of a checkered history since flotation and disappointed pretty badly last year after a set of bumper results the year before. I think that has put people off but I see these as cheap at the moment, with a very nice yield, and some good potential for capital appreciation.

Cheers,
Steve.

[masurenguy] 17/1/2008 18:45

Profits trebled, outlook promising, good geographic spread of business, net assets circa £30m v market cap of circa £39m with an historic PER of 10 and a yield of 8.4%.



Looks good value to me - am I missing something here ?

[leading] 17/10/2007 09:48

Well I guess that if a profit warning was coming this year we would have had it by now, so there is increased confidence in a decent outcome for the year which ended 30th September.

These shares look ridiculously cheap to me, with a stonking dividend that management are very committed to maintaining or improving, very high value of net assets relative to market cap and the whole commodity bull market background (which looks like continuing for years).

A lot of people seem to have been put off by the timing of the float of the company, but that's history and it doesn't mean that an investment now is a bad bet. Seems a reasonable way to play commodity market strength to me. Dollar weakness is the only adverse factor I can see, but with no profit warning, I guess it has been accommodated.

[mathisvale] 05/10/2007 16:05

The net asset value and large dividend have helped the share price form a solid base.

The first higher low has appeared on the chart, so looks promising as the first tentative signs of the next bull cycle

[nickcduk] 14/6/2007 08:50

Final quarter turnover will have been hit by about 15% due to dollar weakness versus last year. Going forward year on year comparisons are less onerous and that should allow higher turnover to be reported. Minor metals and minerals have been very strong over the last few months. That should be reflected in full year results. For obvious reasons they are being very cautious in their outlook it seems.

[mathisvale] 14/6/2007 08:39

The interim results look OK. Profits are steady, the dividend is enormous and the company is growing steadily.

This not a stock with a high profile. The steep dive in the share price shortly after the share issue must have put a lot of people off. However, this business is cyclical, the management are experienced, and large ups and downs are the name of the game.

In my view this is a very good stock to buy at this stage of the cycle. That is what I have been doing.