AGL - Accordant Group. was previously AWF Madison, Allied...

[noodles]

Wow, that's awesome, paying $36M for a company with $56M turnover p/a! Diversification into white collar business as well, within an industry they already know. Zero debt as well. These guys are a definite buy after last years performance and when CHCH kicks in to gear!

Wow, they just announced a 20% DROP in profit.

[noodles]

I calculate 2014/15 profit to be:

2013 Profit from continuing operations $5.4mil
+50% increase (as stated in annoucement) of $2.7
TOTAL $8.1 mil

That's an eps of .341

Puts AWF on a pe < 10

So the acquisition certainly makes sense.

However, the amount of debt($36 mil) on the BS and recent poor(profit) performance certainly means the stock doesn't justify the high pe that it once had. Remember, this is a cyclical stock

[BlackCross]

The market seems to like it - up 9% at the open.

[noodles]

The market seems to like it - up 9% at the open.

Sure is. Guess what the spread is ... 9%

Another risk... liquidity.

DISC: Do not hold, but seriously considering buying some

[percy]

Percy "well positioned for expected growth in the second six months "

https://www.nzx.com/companies/AWF/announcements/241880

Not too sure what to make of this I suppose not the best news now ...however a positive outlook.....

Certainly is a very positive announcement.The acquisition is of a good size and will be good for AWF .
Certainly gives AWF much needed growth/bulk.
Pleased there is a sizeable earn out fee.

[percy]

From the notice of meeting;"AWF's underlying EPS could exceed 30 cents for the 2014/15 financial year. This compares with EPS of 20.7 cents reported by AWF in the 2012/13 financial year.Such an increase in earnings would allow significant headroom for a steady lift in dividends while providing for the Company to adopt an appropriate debt programme."
"The new opportunities which are expected to be created as a result of the Madison acquisition and the wider sector involvement available to the integrated AWF/Madison group is expected to significantly lift the AWF Group's attractiveness to clients.Any financial benefits in this respect have not been quantified in the above forecasts."
Very positive.Use of the word "significant" twice in the announcement is a very strong buy signal.!! lol.

[stoploss]

https://www.nzx.com/companies/AWF/announcements/243804

[percy]

Bit of a wake up call for us.

[psychic]

Yup. Simon may have to park the boat for a spell and crack the whip back at the mill.
disc. out today but disappointed nonetheless.

[Lizard]

Interesting comments, snapiti.

I halved my remaining holding on the announcement to reduce the risk. I still like the yield, but seemed like one for the chop as I re-balance the portfolio to "neutral" after recent price moves across the market.