Putting this on watch. Was a good company once. Too much debt in this environment and with current earnings? 10 year ROE FY04 - FY13 Return on Equity (%) 17.3 17.8 43.9 26.7 36.5 28.5 22.2 20.7 24.1 18.5 Today's Price: $1.185 May 21 2014 After previous lackluste guidance, Austin Engineering (ANG) has lowered guidance further. The declining share price has again taken a body blow and is down 22% so far today (Noon). Yet here is what the institutional analysts have been recommending to the public. It's not often that a small cap company enjoys a 'strong buy' full consensus From Comsec website: Contributing Analysts: Bell Potter, CBA Institutional Equities, Moelis Australia Securities Current Consensus Recommendations Strong Buy Recs = 3 Number of contributing analysts = 3 Over at NabTrade : The NabTrade Research Team Upgraded ANG from Sell to a Hold on 09/05/14 How shrewd
So this got down as far as 8c. Thankfully, i never got further than putting it on yet another watchlist, then largely ignored it until recently when i saw it price jump. Dont forget there are at least 3x the number of shares now after massive capital raising @ 8c So large debt combined with downturn in the sector caused near death as the company was not making enough to satisfy the conditions of its lenders. Sorry to have drawn any attention to it here (though i did say it was a watch, did not promote as a buy) This is a good example i think never to assume that director buying is necessarily a good guide to future share price appreciation, as the recently replaced M.D was buying significant amounts on a number of occasions at above a dollar. Also there was optimistic talk by the company of business pick-up in the resources services sector well before time. Also beware broker recommendations. Article from 2014 http://www.couriermail.com.au/busin...r-profit-warning/story-fnihsps3-1226926187436 The CFO guy standing in the mining truck tray disappeared from the management list soon after. Then this year the MD went. Trading proverbs: "There's seldom just one cockroach in the kitchen." Dont buy into a 'cheap' stock after an earnings disappointment or downgrade.
