Wogen Share Discussion Threads

[rambutan2] 02/11/2005 23:28

what partic caught my eye was that independent invst trust had taken a stake. it run by a v canny but cautious manager and board who i would have expected to run a mile from this unless they v v sure.

PERSON(S) INTERESTED IN 3% OR MORE OF THE ISSUER'S CAPITAL, EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL
BEFORE AND AFTER ADMISSION:

Prior to Admission After Admission
Ordinary Shares % Ordinary Shares %
Colin Campbell Williams 23,031,620 51.29 13,453,727 29.96
Allan Jasper Kerr * 5,923,000 13.19 4,314,552 9.61
Peter Howard Watkins 5,908,440 13.16 3,905,614 8.70
JP Morgan Asset Management 2,377,049 5.29
Douglas Morris Hunter 3,063,920 6.82 2,028,747 4.52
Independent Investment Trust 1,639,344 3.65
New Star Asset Management 1,639,344 3.65
Damian Alexander Brousse 1,643,800 3.66 1,274,406 2.84

[nephin] 01/11/2005 18:57

CURRY:

It all depends what sort of shirt you wear, I usually buy mine from Primark so I can afford to loose one or two, I'm in tomorrow - why not?

Nephin

[spooky] 01/11/2005 18:39

I believe in the 15 year resource super cycle and i have bought into the China story so i suppose this is going to be a no brainer for me :-o) If i'm going to take a ride J.P.Morgan and New Star are reasonable co-passengers.I still have a lot of research to do but i'd be surprised if i didn't buy a few,hopefully the price will edge lower.

[currypasty] 01/11/2005 17:54

"Buy, but only if you're prepared to lose your shirt."


thats not very nice !!!!!

[tole] 01/11/2005 17:50

Times Online
01 November 2005

Wogen

WOGEN, which made its debut on the lightly regulated AIM market yesterday, presses all the fashionable investor buttons. The company trades exotic metals such as molybdenum, titanium and indium - the stuff used in high-resolution television screens. For investors who believe in the resources "super-cycle" (the theory that raw material prices are in for a 15-year bull ride), it looks well-placed. For those who buy into the China story, it stands out, having been there since 1976.

This is a high-risk business. Wogen takes physical delivery of minerals, not always with an end-using customer signed up. Adverse price movements and defaulting counterparties can smash profits. Even so, it has managed to stay in the black for 29 of its 33 years. At the 122p placing price, it trades on two to three times net assets, just four times this year's earnings, and yields 6 per cent.

The founder has partly sold out. The sponsor is Bridgewell Securities, whose last stock market debutante was Wham Energy, which has just flopped. Buy, but only if you're prepared to lose your shirt.



Market Report
By Michael Jivkov
Published: 01 November 2005

Finally, Wogen, a London-based international trader in speciality metals and minerals, had its first day of dealings on AIM. Existing shareholders at the group used the float as an opportunity to cash in some of their chips. Colin Williams, Wogen's deputy chairman, netted £11m. In total, £20m was raised at 122p and the stock closed at 134.5p.

Among institutional investors buying into Wogen were JP Morgan Asset Management and New Star Asset Management.

[spooky] 01/11/2005 16:19

Well i don't think it's too difficult.

The positives are that they are a long established well regarded market leader with highly skilled multi national staff.They well placed in the Far East and Russia and growth has been developing over a number of years.No major balance sheet or pension issues.Trading on an historic PE of 3.5 and paying a 5.5% dividend next year.Management has not changed and they still own just under 60% of the company so they can hardly be regarded as unmotivated.

The negatives or perhaps the negative is that the company's primary source of income is trading of metals.They have a slightly different profile than some trading organisations in the fact that they work very closely with their customer base,but they are traders.

The market has tended to give trading companies a low rating until there is a more established history,but i worked at Salomon Bros. in the 1980's and the profits were all generated by trading and it didn't stop the market according them a higher rating,let's say above 10 times.

In conclusion if you believe that global economic growth will continue and that the Far East and Russia will be at the heart of industrial and manufacturing expansion,then this company is very well placed to benefit.They are undoubtedly good at what they do and i suspect that after a period of indigestion with the new shares, any sign of good news could be met with some hefty price rises.I will buy a few and add on any weakness.

[wjccghcc] 01/11/2005 15:37

Thanks. Would appreciate it if you could summarise the key +/- points.

[spooky] 01/11/2005 15:36

Thanks WJCCGHCC,i agree and disagree but lets move on for now.

The Wogen prospectus has arrived the first thing i notice is that the unaudited profit for the 12 months to 9/2005 is estimated at £22.6 million or £16.1 after tax so apparently they are on an historic PE of 3.5.PE's are not everything but i will read the rest with interest.

[spooky] 01/11/2005 12:21

WJCCGHCC - Off topic but have you had a look at Interior Services (ISG).The Director sale last week has thrown me a bit but i know a few people in the industry and the facts would all suggest they are too cheap.No debt problems,just about to pay a 6p dividend,the recent acquisition made a lot of sense and they are probably trading on less than 8 times next years earnings 06/2007.There is a business cycle but it has some way to go .The industry is consolidating and they are the market leader in their space.I bought some at the end of last week but as i say the Director sale has confused me.Any thoughts ?

[wjccghcc] 01/11/2005 11:32

Bought a few as well. Feedback I get about the management is also very positive - been around for a while, solid track record and extremely well connected in China.

[spooky] 01/11/2005 10:51

Well feedback i have from people that know the company is all positive, but i'm still waiting for the prospectus before doing a little more digging.

[fromtheblue] 01/11/2005 10:48

Does seem too good to be true. I bought a few yesterday and a few more this morning. Cannot access any decent info on this so will not commit to any large holding until then

[spooky] 31/10/2005 22:37

This company would appear to be trading on a prospective PE below 5 perhaps a long way below 5.That doesn't strike me as immediately obvious that a company whose 3 year trading record reads :

2003 turnover £95m profit £3m
2004 turnover £133m profit £6.9m
2005 (9 months) turnover £164m profit 14.6m

Particularly when the prospective yield is above 5% and current management still owns 60% of the business.Throw in the market leading position in China and i'm left a little confused.Unfortunately Bridgewell are sending the prospectus by post so it will be a couple of days before i know more.I would be grateful if everyone could refrain from buying until i have completed my research.

[currypasty] 31/10/2005 15:17

31 October, 2005

FIRST DAY OF DEALINGS ANNOUNCEMENT

Wogen Plc ("Wogen" or the "Company"), a London-based international trader in
specialty metals and minerals, is pleased to announce the listing and first
dealings of its shares on the Alternative Investment Market (AIM) of the London
Stock Exchange today. Wogen shares will commence trading at 8am today under the
ticker of WGN.

Highlights

* Wogen has placed 16,393,443 ordinary shares in the Company with
institutions at a price of 122p per share to raise #20.0 million.
* The Company will have an initial market capitalisation of #54.8 million,
with a total of 44,905,000 shares in issue and a free float representing
36.5 per cent of the shares in issue.
* Existing shareholders will maintain a significant stake in the Company
following the offer. Mr Colin Williams, the Executive Deputy Chairman, will
remain the largest shareholder of the Company with a 29.96 per cent. stake,
while the remainder of the executive management team will hold a collective
27.16 per cent. stake.
* The flotation is being undertaken as part of a plan for orderly
succession of ownership and management within the business. The float will
achieve a broader ownership structure, greater financial flexibility, an
enhanced corporate profile and provides an opportunity to further
incentivise, attract and retain staff.
* The Company intends to pay a core dividend of #3.3 million representing
a notional yield of 6.0 per cent. at the placing price, for the current
financial year to 30 September 2006. Subject to unforeseen circumstances, a
similar core dividend will be paid the following financial year. The Company
reported turnover of #157.0 million and profit after tax of #14.6 million in
the 9 month period to 30 June 2005.
* Dealings in Wogen Plc ordinary shares are expected to commence on AIM on
Monday, 31 October 2005. The company will trade on a ticker of WGN.


* The nominated adviser and broker to the flotation is Bridgewell
Securities Limited.

Commenting on the placing, Allan Kerr, Chief Executive Officer, Wogen Plc, said:

"We are very pleased with the support institutional investors have given to the
flotation, and look forward to today's listing. The IPO will allow our Company
to enter a new phase of development and we look forward to working in close
partnership with our new shareholders as well as our existing customers."