EMM

[younga]

Hi
this wee stock came up on radar today. A desription is below. It has risen over 40% today, and it still looks cheap according to me. The market cap. is about 8 to 9 million, with a net profit expected of about $1 mill. to 1.2 mill.
Anyone know much more about this company.
Company details
Electrometals Technologies Limited
ACN: 000 751 093
Chairman: Richard Keevers
MD: Richard Keevers

28 Commercial Dr
Ashmore, QLD 4214

Tel: (07) 5526 4663
Fax: (07) 5527 0299
www.electrometals.com.au

Dividend Reinvestment: No
Shareholder discounts: No

Commentary
Business description
Electrometals Technologies Limited (EMM) is a Queensland based technology company which has developed, patented, engineered and commercialised EMEW electrowinning system for winning metal from solutions.

[Mick100]

Done a bit of digging this one
Great sector - supplying capital goods to the mining industry

They are not sounding too concerned about the $3m claim against them, made by a south american miner, but I am concerned about it

MMN, a company which I hold, has installed their electrowinning gear and after 3-4 months of commissioning it is operating at 40% below design specifications

Also noted that the forward order book is not full for the this half FY

[Lizard]

I thought EMM looked positive earlier this year and, after an initial profitable trade, bought a longer term hold which has performed dismally.

I'm not so concerned about the legal claim - since enough money was wiped off the market cap by the announcement such as they could have paid out the entire claim anyway. But the earnings are lumpy and the lack of recent larger wins is of concern.

In addition, the opportunistic capital raising post a large contract win has not impressed me, as there really appears to have been very little happening since then to implement the strategies used to justify it.

Prefer AET in the minerals recovery sector and possibly even HMC (though I think they will also perform erratically).

[Mick100]

Hi lizard
You have interests in some most interesting companies

Do you know of ZGL (I have bought recently)

It is a small conglomerate type company - typical asian set-up I think
The part of the business that interests me most is the manufacture of equipment for offshore drilling and oil production - this is the part of the business that is expanding rapidly relative to the other small parts of the conglomerate

Good earnings growth and a full forward-orders book for the next 12 months
.

[Lizard]

Hi Mick,

Yes, I looked at ZGL sometime back thinking it looked super-cheap and didn't buy because of the "Asian conglomerate" factor - but, of course, have since wished I had! Haven't looked recently, as I need to reduce the number of stocks I hold rather than add, but it would certainly be on my list of possibles.