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Lizard
29-08-2007, 09:58 AM
Download the tidy first half result from here (http://www.cavotec.com/corporate/flash/corporate/3/22/investor-relations/).

EBIT forecast raised to E12m for FY07 - assuming they are stuck with the current high tax rate of 37% (?), then this would equate to $NZ13.3m NPAT at current exchange rate of 0.515. This puts it on a forward P/E of around 23 at current price of $4.80.

I like this business - would seem to have good growth potential which is currently being demonstrated in revenue growth. However, would like to be able to add to my small holding at a price at least 20% lower than current.

Lizard
08-10-2007, 11:01 AM
Nice announcement (http://stocknessmonster.com/news-item?S=CCC&E=NZSE&N=154921) from Cavotec today:


One new MoorMaster order (Eur 500k)
Open-ended business established with a division of Chevron (for MoorMaster application development) A 3-year contract with ODIM AS Norway for Micro Control technology to be used in new seismic vessels. Said to contribute several million Euro per annum to Cavotec.


Little effect on this illiquid stock - though it's mildly possible FNZC and Forbar will update their recently initiated coverage and garner some interest over the next 48 hours.

Lizard
29-10-2008, 08:05 AM
Good quarterly report from CCC out this morning. Order book at record levels (up 24% on same period last year and that's in Euro's, not declining NZD's). Rolling 12 months order intake is up 9.7% on a year ago - despite sale of Gantrex in October 2007 (Dabico acquired April 2008).

CCC was one of my "defensive" picks going into this slowdown - still fallen around 38% though (on fairly low volume and frequently wide spreads). Not as cheap as some stocks (forward P/E around 10.5?) but I figure PEG on forward (one year) growth in earnings is probably below 1 which can still be hard to find.

Merseyredboy
29-10-2008, 08:35 PM
Lizard

A long time holder. The quarterly report continues to show strength and a good hedge with revenues in EUR and USD in presume.

Was very interested in the prior days announcement re the new PC Air units. Another ground breaker. The airlines must be interested in an innovative product that could save between 200-600 Litres of AVGAS per hour on ground.

Very green approach. Am waiting for a report on the St Lawrence Seaway project.. as I can see a link to the building of a second lock for the Panama Canal and CCC's suction pads.

Lizard
28-08-2009, 02:01 PM
Half year result was okay - perhaps a little weak, taking into account the normalisation of tax levels which finally occurred after recent legislation reduced tax on foreign earnings.

Disappointing is the big increase in debt - which seems to have occurred partly as a result of slow-payment from some debtors. Lets hope they succeed in better management of working capital in the second half or they might yet get sucked into the capital-raising whirlpool.

Outlook was encouraging and order book showing more resilience than expected, but the story is still another 6 months off a likely low point in reported figures. Might lag the market for the next few months but I still think a long term winner.

Lizard
04-09-2009, 08:08 AM
Been a bit quiet on the order front lately. Smaller ones often rate a media release but not a market announcement - so I guess the $'s might not be significant overall, despite the title.

Cavotec MSL Wins Major Cable Reel Equipment Order for Brazilian Mining Group Vale (http://www.cavotec.com/corporate/23/media-releases/)

Lizard
29-09-2009, 06:42 AM
Another little contract in the news:

Cavotec MSL wins Iron Ore Handling Equipment etc. (http://finance.yahoo.com/news/Cavotec-MSL-Wins-Iron-Ore-bw-3334258804.html?x=0&.v=1)

Nevl
07-10-2009, 12:35 AM
Given the huge infrastructure projects around the world I expect CCC to be doing a lot better. Have it on my watchlist for now and will keep an eye on it. Think it could be a big beneficiary of the stimulus measures taken by Govts around the world.

lastmoa
18-10-2009, 03:06 AM
I am also a long term shareholder from MSL days and follow Cavotec´s developments.
Good to see some others make constructive comments here from their research. However I do find bext way to get comment directed is from the recent Cavotec blog area. http://blog.cavotec.com/
From here you can get replies from mnagement to recent news, etc. I have posted some questions and got prompt relies. Woud appreciate some support here from such informed shareholders.
regards



Another little contract in the news:

Cavotec MSL wins Iron Ore Handling Equipment etc. (http://finance.yahoo.com/news/Cavotec-MSL-Wins-Iron-Ore-bw-3334258804.html?x=0&.v=1)

Nevl
18-10-2009, 11:07 AM
I am impressed with that site. An excellent communications tool and many companies in NZ should have a close look and emulate.

Still expecting CCC to be doing a lot better and have a feeling it will all come at once.

lastmoa
21-10-2009, 08:53 AM
Agree with all your comments Nevl.
For your interest, in case you hadn´t seen it, in the Cavotec blog I had posted the below questions, under the ´2009 2Q Report´area. The Cavotec reply is below also.
Look fwd to yourself, ´Lizard´, and other informed shareholders to also post questions to managemnet here, where applicable.
regards
Robbie Dellow (robbie@dellow.com)


2 Responses to “2009’s 2Q report released”
Robbie Dellow says:
August 13, 2009 at 9:47 pm
I have just quickly read the report and a Press media report. From what I read, Cavotec expected this downturn due to the current climate and forsees a lift in 2nd quarter.
Prior to this quarter I was pleased when I heard that that Cavotec was exercising caution and performing internal cutbacks. I note from the report that Cav is now considering paying back these saving to all employees. Is this prudent to discuss this yet as Cavotec is not entirely ‘out of the woods’ yet – and in a bigger picture the overall world markets are not?
Besides, with the share price wallowing at a near 52 week low I feel that most shareholders, that are not part of the ‘good chunk of the company owned by employees,’ are not feeling as radiant. On a smaller note they did not receive dividend payments.
Congratualations on the positive steps that the company has received in the last few weeks but as private shareholders we have not seen anything concrete as yet to cheer about, on a share price basis.
regards


John Polatz says:
August 14, 2009 at 9:17 am
Hi Robbie,

Thanks for the email, and for taking the time to follow the reports about Cavotec.

I would ask that you not read into too much of Alan’s quote, as it more of a paraphrase and a combination of a few things he and I spoke about. We made this exact same comment at the AGM and with the same caveats that while ‘we’d love to pay back’ our salary cuts, we donąt know if / when we could due to the cloudy vision of where invoiced sales will be for the rest of the 2009. As I also mentioned to Alan, it is this same unpredictability of sales invoiced which has disallowed us from thus far giving final invoiced sales guidance to the market for 31 December 2009. We know and see the big opportunity projects on the horizon, but they are not booked yet, which means the clock from ‘order to delivery / revenue’ hasnąt started ticking on them yet.

Additionally, my comment about the ‘good chunk of the company still being owned by employees’ was made exactly in reference to why we all volunteered to cut our own salaries…because we knew it was in the best interest of the long-term value of the company. In this, we were acting exactly in line with all of our shareholders – either internal or external.

Even with between 5% and 10% less salaries throughout the company, I can assure you our people are ‘working harder for less money’ in every country we are in. We’re out there in front of customers, negotiating with suppliers and informing the airline industry and ports & maritime regulation authorities why and how our technologies will make their global operations safer, cleaner, and more efficient. There arenąt many banner headlines to discuss with the market right now, but it’s the behind the scenes work we are doing that will be our ace-in-the-hole when the economic duress subsides. We’re mopping up all of the bread and butter little orders, while simultaneously tracking other larger opportunities that will bring a big smile to all of our faces when they come to fruition.

While we have no direct control over the share price, and while we share your awareness of its current 52-week-minimum-level value, we do believe that Cavotec is beating the market right now in terms of our relative financial performance (versus competitors and some customers) and certainly in terms of maintaining vigilance with ket market players. Such intangible value should, in my personal opinion, turn into tangible economic value for all shareholders when ‘the world’ is ready to put risk capital back into the equity markets.

Kind regards,
John J. Polatz




I am impressed with that site. An excellent communications tool and many companies in NZ should have a close look and emulate.

Still expecting CCC to be doing a lot better and have a feeling it will all come at once.

Lizard
17-11-2009, 07:51 AM
It is bothering me that there is still no quarterly report out from CCC for September Qtr. They established a pattern of providing quarterly reports about one month after end of qtr. June quarter was a little later than usual - reported 13 August. This quarter - assuming it comes - will be later still.

I know the quarterly is optional and they are entirely within their rights to alter reporting dates or even whether they report at all. But deterioration in reporting patterns is often an early warning of deteriorating outlook (which the share price has been signalling for some time).

Merseyredboy
17-11-2009, 08:42 AM
Agree Lizard

I to noticed the trend with the June report and now its delay replication this month. Used to be produced in three weeks during the good times. Still getting the contracts but time to sign could be the issue. Like the product suite still the one investment held irrationally because of it.

Lizard
24-11-2009, 04:02 PM
Quarterly report finally out today. September quarter figures not too flash but good to see promises of a record 4th quarter expected for order intake. Not likely to be enough to get the result over the line and beat last year though - since many of the orders fall into next financial year.

However, might be approaching the low. Buyers minds tend to turn to projecting the coming year as soon as the current result is known (or at least realistically perceived). If the order intake continues to fly, then by Feb there would be a more positive outlook.

Looking at chart and market depth, it doesn't appear there's any rush to buy yet though!

Anna Naum
24-11-2009, 09:08 PM
Quarterly report finally out today. September quarter figures not too flash but good to see promises of a record 4th quarter expected for order intake. Not likely to be enough to get the result over the line and beat last year though - since many of the orders fall into next financial year.

However, might be approaching the low. Buyers minds tend to turn to projecting the coming year as soon as the current result is known (or at least realistically perceived). If the order intake continues to fly, then by Feb there would be a more positive outlook.

Looking at chart and market depth, it doesn't appear there's any rush to buy yet though!

Volume usually picks after the result announcements. It allows insiders to sell.

Lizard
26-11-2009, 08:09 AM
Particularly large order announcement out this morning - valued at E30m (about 22% of current annual order intake). And it kicks off the use of their PC Air modules in a large way. Might help the volume.

Global engineering group Cavotec to deliver environmentally friendly ground support systems for Bahrain International Airport (http://www.cavotec.com/corporate/23/media-releases/news/125/)

Merseyredboy
26-11-2009, 09:19 AM
Lizard

Brought this years ago on the vacuum technology story. This technology not suitable for the panama canal rebuild alas.

But when this new PC Air for plans on the ground was announced last year. Thought the technology was huge, as supported by airbus also. No need to burn avgas while on the ground etc etc. This product could be bigger and hav a green bent. Good to see such a sizeable order and new reference site to build off..

Lizard
26-11-2009, 09:21 AM
Might help the volume.

Well that was ironically correct - 384,000 shares through at $2.70 on a special crossing at open! Hope that clears out the overhang from recent seller. I put a small buy order through FNZC the other day and noticed it was bundled before going through later, so realised they probably had a large seller waiting in the wings.

See if it can firm from here.

Lizard
29-11-2009, 06:35 AM
I am a bit confused by the lack of interest in CCC from the media, brokers and other investors. That large order didn't appear to get picked up by any mainstream media and even Forbar, who seem to have been following CCC for a while, didn't rate it worth a mention in their weekly update. FNZC picked them up briefly last year and then dropped coverage again. Not even any real buyers in line.

In many ways, Cavotec seems like one of those stories that should appeal to brokers - green technologies, a history of growth and trading at P/E's more suitable for a mature or cash-cow stage business. So I am wondering if there is a deeper reason than just lack of liquidity?

Any insights/thoughts appreciated - feel free to PM if don't want to post.

percy
29-11-2009, 12:19 PM
it does not get followed.
craigs have it as a hold ,target price $2.86.
i went to AGM in CH Ch a couple of years ago.
best run agm i have been to.
the annual report was the best i have ever received,with a dvd showing how all their products worked.
the airport pop ups mean there is no reason for vehicles to be around the aircraft.amazing how many accidents there are from service vehicles hitting
parked aicraft.
of course the mourring systems means no one getting killed with stray ropes.also saves a lot of time for docking ships and holds them in place better than ropes. this is most importent with container ships loading and unloading in harbors with seas with a large swell.
great products,excellent workmanship,excellent company,good management with plenty of skin in the game.
they are doing everything right so our day in the sun will come.

lastmoa
30-11-2009, 03:06 AM
I totally agree with you guys. Is perplexing how this stock is trading low with the potential it has and the recent large order news. I noticed that this Bahrain news never made the stuff.co.nz or nzherald.co.nz news sites even though anything about Moormaster sales seems to do. There still seems to be a narrow-minded view of Cavotecs products rather than seeing the bigger picture - imho. Something that NZ investors/shareholders need to understand.
The recent sale is of their PC-Air product which seems to me as a great kick-off for this product that has been tested in many other sites already.
Cavotec makes a profit, have energy and pollution saving products lines, and are global .. hmmm.
I do think that the train will leave the station soon enough.
btw - remeber to feel free to post comments to the cavotec blog. They seem to respond well.

Lizard
24-12-2009, 08:43 AM
I see a broker finally upgraded to "BUY". Good on them - although personally I think the forecasts they're basing it on are conservative.

Our valuations pretty much concur though - mine is $4.30, Medium-low risk (though risk gets a bit higher for those who need more liquidity than I do).

shambles
21-01-2010, 03:29 PM
Big volume through today. Soaked up nearly all available shares... for now.
Hopefully next tier buying starts with a 3.

disc bought in at 226 week before xmas

Lizard
21-01-2010, 04:28 PM
Hi shambles,
There was a huge (for CCC) special crossing at $2.45, followed by a bit of $2.85 ticker paint. Not sure how they managed to clear the bids between $2.45-$2.80 to do the special or whether they just happened to drop out of the market today. Not possible to guess what this means - except someone with a large parcel to quit could only find a taker at $2.45?

Might lead to some more liquidity if the shares get distributed back into the market? Not sure it will help the price though.

ratkin
21-01-2010, 04:36 PM
So it was a big seller going down , rather than a big buyer going up?

Lizard
21-01-2010, 04:44 PM
So it was a big seller going down , rather than a big buyer going up?
On the bright side, it couldn't be an "insider" at this stage of the year...

Lizard
17-02-2010, 05:43 PM
Another good quarterly report out today from Cavotec with strong order book - although, realistically, it would have looked a bit less promising without the Bahrain order. Will have to see where the results sit though - seems they may still be needing more working capital if the debt funding agreement announced is anything to go by.

percy
17-02-2010, 06:07 PM
Hi Lizard,
But it certainly looks even more promising with Bahrain order.You donot get your biggest ever order without working for it.May lead to further orders.Makes airports a lot safer and cleaner place.Can use Bahrain to showcase products.
Looks as though they are doing everthing right and the MS must save lives and time with ships docking.

Lizard
25-02-2010, 08:58 AM
Steady report from Cavotec this morning. Good to see the improvement in balance sheet and cashflow this year, despite the lower earnings result. Also nice to have a small div again. If they can restore op earnings to 2008 levels in 2010 (as per outlook), then I would estimate a 30% recovery in sp over next twelve months (i.e. from $2.50 up to $3.25). However, lots of water to go under the bridge until then.

I love this company for the longer term, as eventually expect it to become re-rated as a growth business again. But their products are quite sensitive to levels of company investment - currently restrained by the global de-leveraging process.

As an aside, I note that there were quite a few changes to top twenty holders over the past twelve months. Guessing that the large parcel through recently was a sell-down of Peter Montgomery's holding(?).

percy
25-02-2010, 10:15 AM
Lizard.
I thought the report was very positive.I agree with you on the longer term outlook for this company.one to just keep adding a few more to your holding when you can.

Lizard
12-04-2010, 12:25 PM
... I would estimate a 30% recovery in sp over next twelve months (i.e. from $2.50 up to $3.25).

Looks to me like the recent close at $2.90 would mark the start of a new medium-long term trend from TA perspective. Been a few more buyers around of late, so seems we are getting the expected re-rate sooner rather than later. :)

Lizard
19-04-2010, 09:18 AM
Nice to see the Cavotec Quarterly out already - the influence of the new Investor Relations Manager. All looks steady and conservatively positive.

Lizard
25-04-2010, 09:16 AM
Media release late Friday - Cavotec Dabico to supply 53 advanced hydrant pits to Mumbai Airport:
Cavotec to deliver fuel hydrant pits for Mumbai International Airport expansion (http://www.cavotec.com/corporate/download/Cavotec%20to%20deliver%20fuel%20hydrant%20pits%20f or%20Mumbai%20International%20Airport%20expansion% 20April%2023%202010.pdf)

percy
25-04-2010, 09:35 AM
Thank you Lizard I did not see that.Just thinking 40 mil people going to use that airport a year!!! A lot of people.However another good contract for CCC.

MSL
11-05-2010, 02:28 PM
As an aside, I note that there were quite a few changes to top twenty holders over the past twelve months. Guessing that the large parcel through recently was a sell-down of Peter Montgomery's holding(?).

No, that wasnt me Lizard :-)

Lizard
11-05-2010, 04:22 PM
Thanks for the correction, Peter!

Nothing on the companies office to show who it was. Though I notice they seem to be up to 10 directors now, which seems rather a lot!

Surprised the fall in the EUR hasn't battered the sp a bit more, though I guess rather depends on their contract currencies and hedging arrangements.

Lizard
16-06-2010, 06:32 AM
Updating the morning press releases - contract in China:
Cavotec builds on success in Chinese market with port equipment order for Dalian Huarui Heavy Industry (http://www.cisionwire.com/cavotec/cavotec-builds-on-success-in-chinese-market-with-port-equipment-order-for-dalian-huarui-heavy-industry20077)


...will manufacture seven high-voltage (HV) cable reels and seven control cable reels for use on six reclaimers with an operational capacity of 6,500 tonnes per hour, and one stacker with the same capacity.


No value given - won't be their biggest contract...

percy
16-06-2010, 07:06 PM
Updating the morning press releases - contract in China:
Cavotec builds on success in Chinese market with port equipment order for Dalian Huarui Heavy Industry (http://www.cisionwire.com/cavotec/cavotec-builds-on-success-in-chinese-market-with-port-equipment-order-for-dalian-huarui-heavy-industry20077)



No value given - won't be their biggest contract...

Thanks Lizard I did not see that announcement.

Lizard
19-07-2010, 06:03 PM
Second qtr report out today. Good order book etc, but invoicing is lagging - market not in a good mood for that bit of news, so will focus on it. Especially given Euro:NZD exchange rate has drifted so far over last few months that P/E has increased while share price marks time. Exchange rates eventually sort themselves out.

However, bit of an honest view on the overall market - if there's no finance for companies, investment turns down and all these capex-dependent businesses suffer. CCC might be better than most due to some technologies being cost-saving and most being green and specific to CCC. But not exempt.

I guess, not a new thought. The question of confidence is how deep the constraint on investment is going to bite over next 3-5 years.

percy
19-07-2010, 07:01 PM
Second qtr report out today. Good order book etc, but invoicing is lagging - market not in a good mood for that bit of news, so will focus on it. Especially given Euro:NZD exchange rate has drifted so far over last few months that P/E has increased while share price marks time. Exchange rates eventually sort themselves out.

However, bit of an honest view on the overall market - if there's no finance for companies, investment turns down and all these capex-dependent businesses suffer. CCC might be better than most due to some technologies being cost-saving and most being green and specific to CCC. But not exempt.

I guess, not a new thought. The question of confidence is how deep the constraint on investment is going to bite over next 3-5 years.
Lizard.
That is the 64,000 question.Very honest in their assessment.Very hard to swim against the current,however we are well poised for any upturn in demand!!!

Lizard
19-07-2010, 07:04 PM
...however we are well poised for any upturn...

Ahh, that is what I love about you percy... so well-poised! :cool:

percy
19-07-2010, 07:19 PM
Ahh, that is what I love about you percy... so well-poised! :cool:

I have allways worried about companies who are " well positioned" for the upturn.They allways seemed to miss it.Therefore, any company such as CCC. which I really like and know will do well,I prefer to say they are "poised". Bit like my cat linning up a bird.He is poised , should his tail be waggling I know he is "well poised".I think CCC's tail is waggling.!!!

Lizard
26-08-2010, 08:01 AM
CCC half year report out this morning and no real surprises. Down a bit on last year, but they are still aiming to produce similar FY result as for 2008. By my calcs, that would currently be about $NZ16.7m NPAT at current forex rates. Forward PE of 9.3 at $2.45.

Debt has climbed a bit, but would expect some decrease in second half as bills get paid etc - seems to be the pattern for CCC to have low first half and poor cashflow, with better second half? Bahrain project should start to drive results for next 6 - 12 months, but good to read that they are seeing a general increase in the smaller business that has continued on into July.

Hoping for $3.20 in another 6 - 8 months time if they can achieve forecast (and no more big moves in NZD:EUR).

percy
26-08-2010, 02:42 PM
CCC half year report out this morning and no real surprises. Down a bit on last year, but they are still aiming to produce similar FY result as for 2008. By my calcs, that would currently be about $NZ16.7m NPAT at current forex rates. Forward PE of 9.3 at $2.45.

Debt has climbed a bit, but would expect some decrease in second half as bills get paid etc - seems to be the pattern for CCC to have low first half and poor cashflow, with better second half? Bahrain project should start to drive results for next 6 - 12 months, but good to read that they are seeing a general increase in the smaller business that has continued on into July.

Hoping for $3.20 in another 6 - 8 months time if they can achieve forecast (and no more big moves in NZD:EUR).

Yes I think the Bahrain project is yet to make the accounts or be accounted for.I like you am encouraged by the general increase in the smaller business.I think activity breeds activity.Poised.!!!

Lizard
14-09-2010, 06:02 AM
Latest news release - presumably $US:
Cavotec Pops up for $4m Contract at Muscat (http://www.arabianaerospace.aero/article.php?section=airports&article=cavotec-pops-up-for-4m-contract-at-muscat)

Lizard
16-09-2010, 06:07 AM
Another news mention - although not a Cavotec media release this time:

Government of Canada funds Green Port project in Prince Rupert (http://www.tc.gc.ca/eng/mediaroom/releases-2010-h103e-6078.htm)


This project will provide shore power capacity supplied by an industry leader in marine shore power systems. Electrical connections will be made through a Cavotec dock connector pit and will include a cable management system providing electrical power directly to the ships. BC Hydro will supply power through its existing purpose-built
69-kilovolt distribution line.

Lizard
15-10-2010, 07:29 AM
Steady report from Cavotec this morning. Good to see the improvement in balance sheet and cashflow this year, despite the lower earnings result. Also nice to have a small div again. If they can restore op earnings to 2008 levels in 2010 (as per outlook), then I would estimate a 30% recovery in sp over next twelve months (i.e. from $2.50 up to $3.25). However, lots of water to go under the bridge until then.

Nearly 8 months later, $2.73 and still having trouble moving far towards my price target from Feb.

The forecast remains "the same", although the wording changes somewhat in a way I dislike, as allows for more uncertainty at the more critical NPAT level - i.e. at time of annual report, they forecast a "return to 2008 operating levels". At half year, the forecast altered to say "return to our 2008 level of revenues and profitability". With the latest quarterly, it has morphed into a "return to 2008 levels of revenue". Call me picky, but in 14 years of investing, I have become wary of company forecasts and would not consider forecasts for revenue to be equivalent to forecasts for profitability. Besides which, to the NZ investor, the weakening Euro is likely to undermine any perception that the result is equivalent to 2008.

Grumpiness aside, it is good to see a reasonable order intake this quarter, despite no major contract announcements. Rolling 12 month order intake clearly leads order invoicing by at least 9-12 months. The effect of that leap in order intake last year (triggered by the Bahrain order) is just beginning to be converted to invoices and should gradually be converted to cashflow, profits, dividends and share price over the next 2 years.

percy
15-10-2010, 08:09 AM
it is good to see a reasonable order intake this quarter, despite no major contract announcements. Rolling 12 month order intake clearly leads order invoicing by at least 9-12 months. The effect of that leap in order intake last year (triggered by the Bahrain order) is just beginning to be converted to invoices and should gradually be converted to cashflow, profits, dividends and share price over the next 2 years.

Yes I agree with you.They certainly look to have turned the corner.Lets hope momentum gathers speed.

macduffy
20-10-2010, 03:42 PM
CCC expressing concern about the lack of liquidity in the NZ market and considering a secondary listing offshore.

http://www.stuff.co.nz/business/4253412/Liquidity-fears-help-bring-shares-down

Another stage in the cycle, I'm afraid. Lack of quality companies on the NZX leads to lack of interest from investors, leads to lack of liquidity in trading, leads to companies looking to list offshore, leads to lack of quality companies..............

At least we have the ASX.

percy
20-10-2010, 05:01 PM
CCC expressing concern about the lack of liquidity in the NZ market and considering a secondary listing offshore.

http://www.stuff.co.nz/business/4253412/Liquidity-fears-help-bring-shares-down

Another stage in the cycle, I'm afraid. Lack of quality companies on the NZX leads to lack of interest from investors, leads to lack of liquidity in trading, leads to companies looking to list offshore, leads to lack of quality companies..............

At least we have the ASX.
macduffy I find your post disappointing, as it is too true.Good companies to invest in , in NZ are hard to find ,and to loose another makes one wonder.MHI,NPX looking to Aussie and I expect in a few years EBO will want to move too.

Lizard
20-10-2010, 08:46 PM
Any company with 83% of shares held by the top twenty shareholders is going to have a problem with liquidity. It is unrealistic to blame the NZX for this.

If Cavotec is serious about liquidity, they need to get at least another 10% of the company held outside top twenty. It seems to me that illiquid companies suffer largely because major shareholders don't wish to give away a share of the company too cheaply. Admirable and understandable, but it comes at a cost. If you don't like it, take it private again. Otherwise, at least try a spp. I don't recall any visible attempts at cap raising by CCC and find it hard to believe that they wouldn't find a broker to underwrite at a price if they want capital for significant acquisitions.

Overall, I cannot see what benefit a secondary listing offers to either liquidity or capital raising, other than to allow a more friendly avenue for Scandanavian employees to sell their shares or as part of a longer term plan to exit New Zealand (possibly tax reasons would justify this given the historically high tax they have paid - though this situation may have improved under recent changes to foreign earnings tax).

percy
21-10-2010, 06:32 AM
Any company with 83% of shares held by the top twenty shareholders is going to have a problem with liquidity. It is unrealistic to blame the NZX for this.

If Cavotec is serious about liquidity, they need to get at least another 10% of the company held outside top twenty. It seems to me that illiquid companies suffer largely because major shareholders don't wish to give away a share of the company too cheaply. Admirable and understandable, but it comes at a cost. If you don't like it, take it private again. Otherwise, at least try a spp. I don't recall any visible attempts at cap raising by CCC and find it hard to believe that they wouldn't find a broker to underwrite at a price if they want capital for significant acquisitions.

Overall, I cannot see what benefit a secondary listing offers to either liquidity or capital raising, other than to allow a more friendly avenue for Scandanavian employees to sell their shares or as part of a longer term plan to exit New Zealand (possibly tax reasons would justify this given the historically high tax they have paid - though this situation may have improved under recent changes to foreign earnings tax).

As always Lizard you throw new light onto the subject.Thank you. In the back of my mind I keep thinking;which came first,the chicken or the egg??!!!

macduffy
21-10-2010, 07:11 AM
Yes, good points, Liz.

Certainly makes one wonder about CCC's reasons and what they hope to achieve. Maybe it's more a matter of trying to appeal to a bigger, wider market and the first step towards capital raising on the ASX.

macduffy
21-10-2010, 08:18 AM
Just a thought but I wonder if CCC's announcement was prompted by yesterday's Chalkie article about the liquidity problem in a lot of small NZ companies.

http://www.stuff.co.nz/business/opinion/4252702/Hubbard-managed-fund-collected-swag-of-tiddler-stocks

percy
28-04-2011, 03:18 PM
I went to AGM today.They spent a lot of time explaining why they felt Stockholm listing would add value to ccc ; higher multiples,greater liquidity and easier access to capital to fund further acquisitions.Management/directors will not take part in next capital raising, so should give them more shareholders and greater liquidity.
They are very bullish on growth prospects in the mining and transport sectors.In transport they have mooring systems and the airport sector is getting huge growth.The 1st quarter has seen them capture a lot of business and they are finding renewed confidence in their markets.They see greatest growth in China,Asia,India and Brasil.The number of new airports and upgrades in China is huge.They are keen to grow the company by acquisitions.The ceo did a great presentation of where they were and where they were going.Dressed in his fine Italian suit added to the overall quality of the presentation.The lunch was great too.
I have been keen on the way this company presents itself,I like their products,and the sectors they are in .I find it hard to get real quality companies,so having found such a company I will be pleased to retain my holding.
They want to retain the NZ shareholders,so that is why there was no takeover.Should they retain enough they will conduct presentations as they have done to Euorpean shareholders.
They now have a staff of 17 working from tempory premises in Kaiapoi.Since the merger they have spent a lot of capital on moormaster and see good prospects .

percy
29-04-2011, 08:02 AM
good article www.stuff.co.nz bit hard to find so may pay to put cavotec in search box. article is headed cavotec move gets shareholder backing.

percy
23-06-2011, 11:41 AM
Another good order win,to supply 24 Moormasters.

percy
18-07-2011, 08:36 AM
2nd quarter announcement out today confirms the momentum continues, with 2nd quarter revenue up 34% on 2010 2nd quarter.Moormaster sales have been very strong.

Lizard
18-07-2011, 11:15 AM
I am still grumpy with them regarding the offshore move. Have they given shareholders a timetable for this to occur yet?

I sold mine, as didn't want to be stuck in an illiquid share that seems unlikely to have any buyers until the transfer is complete. After that, it is an overseas share and, if I wanted to hold those on a market I can't easily trade, there are plenty of other stocks to choose from! The attractiveness of being a New Zealand share is lost. It is just frustrating to see them making this move at a time when NZ shareholders might have been more interested in the company and they might have had the opportunity to raise additional capital if that is what they are looking for!

On the other hand, having everything denominated in Euro is not going to help at the moment - especially in terms of a NZD based share price. Actually, the s.p. is up 14% over 12 months on a EUR basis...

percy
18-07-2011, 12:03 PM
I am still grumpy with them regarding the offshore move. Have they given shareholders a timetable for this to occur yet?

I sold mine, as didn't want to be stuck in an illiquid share that seems unlikely to have any buyers until the transfer is complete. After that, it is an overseas share and, if I wanted to hold those on a market I can't easily trade, there are plenty of other stocks to choose from! The attractiveness of being a New Zealand share is lost. It is just frustrating to see them making this move at a time when NZ shareholders might have been more interested in the company and they might have had the opportunity to raise additional capital if that is what they are looking for!

On the other hand, having everything denominated in Euro is not going to help at the moment - especially in terms of a NZD based share price. Actually, the s.p. is up 14% over 12 months on a EUR basis...

There is to be another NZ meeting towards the end of August.From memory CCC should list on Stockholm exchange in November.I like the company,the people,the products,the sectors,and with internet communications, keeping up todate should be no problem.I do not expect selling/buying their shares should not be a problem,however as I have no reason to sell I do not mind where they list.The listing in NZ[ in my opinon] was a waste of time,and I look to greater SP growth with them being listed in Europe.The next 5 to 10 years will provide them with huge growth prospects.Airport,shipping and minning industry,are great growth sectors.The Moormaster system provides both safety and time savings.Container ships can be held steady within a few centimetres no matter what the swell is.At airports the greatest danger to aeroplanes are service vehicles.With Cavotec "POP UPS" fuel,waste,power services can be provided without the need for service vehicles.They have stated they want to retain NZ shareholders and will make arrangements to make the capital raising easy for us to participate in.Very happy to hold .

percy
18-07-2011, 12:28 PM
good article www.stuff.co.nz bit hard to find so may pay to put cavotec in search box. article is headed cavotec move gets shareholder backing.

This article [the whole article] is well worth rereading.

percy
18-08-2011, 06:42 PM
The acquisition of Inet airport systems will add further to cavotec's airport business.Should be another good bolt on.

percy
23-08-2011, 06:03 PM
Interim report out today is very good.Revenue for first half is up 33.5% and basic EPS up 41%.Order book increasing.
Commentary with a "well positioned and a 'well poised" had me very excited.!!!!!!

Lizard
23-08-2011, 06:38 PM
...and the price fell.

Yes, they are doing fantastically. Yes, they are now very undervalued. Yes, they are going to move this company to some foreign exchange that most of us can't be bothered figuring out how to trade on...

... they should have run an spp and stayed a bit longer. We would have loved them like our own.

percy
23-08-2011, 07:00 PM
...and the price fell.

Yes, they are doing fantastically. Yes, they are now very undervalued. Yes, they are going to move this company to some foreign exchange that most of us look forward to trading on.

Agree with you as always 100% Lizard. http://www.aussiestockforums.com/forums/images/smilies/iamwithstupid.gif

percy
01-09-2011, 06:44 PM
Today's special meeting was very interesting.The vote to transfer to NASDAQ OMX Stockholm was 92.61% in favour.Every one at the meeting voted in favour.
One institution[I think ACC] voted against.The reason to move is because the growth and earnings have gone up,while the share price has gone down.
As we have become used to the presentations were excellent.The chairman spoke well,the MD spoke of growth opportunities,while former owner and CEO of Inet Mr. Mike Colaco, gave us a full run down on Inet which has just been brought by Cavotec.Inet supply ground support equipment [mainly achiilary power units ie APUs] or and for airports,both military and commercial,and nasa. These power units mean aircraft do not have to have their engines running while stationary.Mike expects Inet turnover to double over the next three years.Inet and cavotec have worked together over the last couple of years and Mike felt Cavotec would give them the distribution net work they lack.As a side bar it was interesting to learn US govt is looking to stop ships from using their enginrs while stationary in port.This with open a huge new market to Inet-Cavotec.
The CEO Ottonel Popesco was pleased to report the high level of orders continues.Approx 92mil Euro,with no slow down of late.Offcourse the higher level of orders have resulted in lower level of cash as one would expect.They are enjoying good level of interest in all divisions.Expect some more big order announcements for moormaster.
I was lucky to run into an old friend who was at the meeting .He has a few shares as his son works in Moormaster division.At present he is in Canada working on a big order for the seaway.I joined my friend for a delightful lunch provided by Cavotec and was pleasantly surprised to be joined by chairman Stefan Widegren and Inet's Mike Colaco.Stefan was overjoyed that NZ shareholders supported the move to Stockholm and felt the company would double over the next 5 years.Felt they had a strong balance sheet,and they were in the right markets.Products such as moormaster were /are really starting to get worldwide acceptance.A very happy,positive meeting.Added the few that were for sale at @$2,70 to my holding today.Yes "well positioned"was mentioned,and noted.

Marilyn Munroe
01-09-2011, 11:26 PM
I sold out before yesterdays special meeting. My reasons are;

They are on a growth trajectory and any profit generated will be ploughed back into the business and not distributed to share holders.

The transaction costs in trading my small parcel on an overseas exchange would have been large.

Despite our parting I believe the Cavotec has a bright future and wish the company and shareholders all the best.


Boop boop de do

Marilyn

Lizard
02-11-2011, 07:55 AM
CCC expressing concern about the lack of liquidity in the NZ market and considering a secondary listing offshore.

http://www.stuff.co.nz/business/4253412/Liquidity-fears-help-bring-shares-down

Another stage in the cycle, I'm afraid. Lack of quality companies on the NZX leads to lack of interest from investors, leads to lack of liquidity in trading, leads to companies looking to list offshore, leads to lack of quality companies..............

At least we have the ASX.

Cavotec have moved their listing to Stockholm on the excuse of liquidity and difficulty raising capital in a small market... yet have then gone on to decide NOT to raise new capital. Meanwhile, I think several European-based execs used the depressed share price in New Zealand that resulted from this announcement to top-up their holdings and further reduce liquidity. And New Zealand holders were put on an NZ based registry list that requires them to get the appropriate form in order to sell, so cannot complete transactions in under 24 hrs... another factor that can hardly help liquidity.

The share price today sits at 13.50 SEK, which is equivalent to about $2.55, so can't say it has helped the share price... and there have been only a handful of completed trades, so no obvious rush of liquidity yet (early days though, I guess).

In general, this move has been costly to NZ shareholders in terms of the increased difficulty in selling the shares on an offshore market, reduced liquidity, and the extended period of suppressed price resulting from the move. While I can understand that CCC had little interest in maintaining an NZ listing while they are headquartered in Europe, I think they should have been more straight-up in relation to their reasons for moving the listing and have been more generous to NZ shareholders to compensate for the costs. If they had really wanted to move, it would have made sense to offer a book-build for new shares on the OMX and then used the money for a voluntary buyback of NZ holders at an equivalent or slight premium to that price or perhaps some similar mechanism.

percy
08-11-2011, 07:48 PM
Today's special meeting was very interesting.The vote to transfer to NASDAQ OMX Stockholm was 92.61% in favour.Every one at the meeting voted in favour.
One institution[I think ACC] voted against.The reason to move is because the growth and earnings have gone up,while the share price has gone down.
As we have become used to the presentations were excellent.The chairman spoke well,the MD spoke of growth opportunities,while former owner and CEO of Inet Mr. Mike Colaco, gave us a full run down on Inet which has just been brought by Cavotec.Inet supply ground support equipment [mainly achiilary power units ie APUs] or and for airports,both military and commercial,and nasa. These power units mean aircraft do not have to have their engines running while stationary.Mike expects Inet turnover to double over the next three years.Inet and cavotec have worked together over the last couple of years and Mike felt Cavotec would give them the distribution net work they lack.As a side bar it was interesting to learn US govt is looking to stop ships from using their enginrs while stationary in port.This with open a huge new market to Inet-Cavotec.
The CEO Ottonel Popesco was pleased to report the high level of orders continues.Approx 92mil Euro,with no slow down of late.Offcourse the higher level of orders have resulted in lower level of cash as one would expect.They are enjoying good level of interest in all divisions.Expect some more big order announcements for moormaster.
I was lucky to run into an old friend who was at the meeting .He has a few shares as his son works in Moormaster division.At present he is in Canada working on a big order for the seaway.I joined my friend for a delightful lunch provided by Cavotec and was pleasantly surprised to be joined by chairman Stefan Widegren and Inet's Mike Colaco.Stefan was overjoyed that NZ shareholders supported the move to Stockholm and felt the company would double over the next 5 years.Felt they had a strong balance sheet,and they were in the right markets.Products such as moormaster were /are really starting to get worldwide acceptance.A very happy,positive meeting.Added the few that were for sale at @$2,70 to my holding today.Yes "well positioned"was mentioned,and noted.

Another good win;
Fortescue Metal Group has ordered 24 MoorMaster units at Port Hedland WA."This technology is changing the industry in ways we never thought possible.It's safer and quicker than convential mooring, and generates substantial infrastructure savings," comments Tony Swiericzuk,general Manager Ports,for Fortescue Metals Group at Port Hedland.This will be the second berth at Port hedland to use MoorMaster.
Cavotec's web page keeps me updated with SP and news.With the selling facility in place,all I have to do is work out is how to buy more,when I have the funds to do so.

percy
11-02-2012, 07:18 AM
.

The share price today sits at 13.50 SEK, which is equivalent to about $2.55, so can't say it has helped the share price... and there have been only a handful of completed trades, so no obvious rush of liquidity yet (early days though, I guess).

Next announcement will be 4th quarter result due on 29/2/12.In the meantime last sale of 80,098 shares was at 16.50 SEK aprox $2.98 NZ$.

percy
17-02-2012, 07:43 PM
Received this letter from cavotec today.
Dear shareholder,
2011 was a transformative year for Cavotec,providing many new opportunities for future growth and development.Key to this process was the re-listing of the company from NZX to NASDAQ QMX in Stockholm,Sweden.Five months on,we are pleased to see that many of our New Zealand based shareholders have decided to stay with the company.
Given this continued support from New Zealand,we will be holding a Cavotec Information & Update meeting in Christchurch.The meeting will take place at 10.30 am on Tuesday,March 13 at Peppers Clearwater Resort,Clearwater Avenue,Harewood in Christchurch.
Attending from the company will be Cavotec's Chairman,Stefan Widegren,and Michael scheepers,Director of Investor Relations.They will provide background to the company's 2011 performance and hold a Q & A session.Following this,a buffet lunch will be served for attendees.
We look forward to seeing you,
Best regards,
Michael Sccheepers
Director,Investor Relations & PR.


Well done Cavotec.
ps. OIC Opus's CEO has not returned my phone call made 3 days ago.

janner
17-02-2012, 08:52 PM
Hmmm.. you have a knack for picking the good one Perc..

percy
13-03-2012, 01:34 PM
Today's presentation was again excellent.A lot happened with the purchase of Inet and the move to Stockholm during the year.
All is now proving they made the right decisions.Moorings are becoming widely accepted.The electric power units for ships and planes enjoying good success.The company is very happy with forward orders,and are looking forward to positive growth in shipping,airports and mining.The chairman answered all questions openly.The information officer help us through cavotec's web site and www.nasdaqomxnordic.com web site.A very large meeting with about 80 people attending.The SP is now back to $4.30 or $24 SK.They have achieved in 6months on the Stockholm exchange what they thought would take 18months so they are very pleased.No shareholder meetings in either Wellington or Auckland, although they are having one on one meetings in both places.They are not sure whether they will have one or two shareholder presentations a year,here in NZ.
PS.OIC ceo has still not returned my phone call.
A very nice lunch was served.

percy
31-05-2012, 01:27 PM
[QUOTE=percy;355903]l,the MD spoke of growth opportunities,while former owner and CEO of Inet Mr. Mike Colaco, gave us a full run down on Inet which has just been brought by Cavotec.Inet supply ground support equipment [mainly achiilary power units ie APUs] or and for airports,both military and commercial,and nasa. These power units mean aircraft do not have to have their engines running while stationary.Mike expects Inet turnover to double over the next three years.Inet and cavotec have worked together over the last couple of years and Mike felt Cavotec would give them the distribution net work they lack.As a side bar it was interesting to learn US govt is looking to stop ships from using their engines while stationary in port.This will open a huge new market to Inet-Cavotec.



AND SO IT CAME TO PASS;Cavotec to supply innovative shore power systems to Port of Oakland and Port of Long Beach."
Other announcement "Cavotec wins major aircraft ground support equipment order in the United states,and a breakthough order in India."
Great, exciting announcements.

Joshuatree
31-05-2012, 07:22 PM
Hey Percy, whats is the ticker for CCC and which stock exchange is it on now, and how has the s/p and div performed this last year? I would like to be in again if it stacks up. cheers

percy
31-05-2012, 07:57 PM
Hey Percy, whats is the ticker for CCC and which stock exchange is it on now, and how has the s/p and div performed this last year? I would like to be in again if it stacks up. cheers

Code is ccc
Here are the sites and codes you need.yahoo finance;CCC.ST
Cavotec;www.cavotec.com go to investor relations,lastest price,and announcements.
Stock exhange.www.nasdagomxnordic.com market is stockholm.Gives buying and selling depth,share price history,etc.
Selling.My shares are held by Link Market services and should I wish to sell I have to fill out form and they sell for me and send me a NZ cheque.
Buying.I would ring Link first to see whether you can buy any a kiwi is selling.Otherwise try your sharebroker.My broker at Craigs did not know if they could buy on Stockholm exchange or not.That was a few months ago,that I asked.
Dividend.They are paying a very modest divie,via an untaxable return of capital shortly.
They are looking to double the size of the company,so divies will be small.
Please go back a page and try to read my posts.
These APUs at Ports really opens up the door to future growth.All their products are gaining market acceptance,so in for an exciting time if you can manage to buy the shares.I added to mine before the move.

Joshuatree
31-05-2012, 09:17 PM
Thanks Percy. I have always like d the story ,can't remember why i sold i fact. I too deal with Craigs and they keep everything in safe custody for me, saves one hell of a lot of paperwork , sending funds to Aus a dream etc and the accountant loves me for it. I Keep promising myself that i will open a trading acc with Etrade or Direct Broking as well, but don't totally trust myself with a trading platform, i may run amok lol. cheers

percy
11-08-2012, 11:15 AM
2nd quarter result out;
Revenue up 21%
Operating result up 31%
Margin increase to 8.1% from 6.7%
Strong cash flow.
Increase in order book.

percy
05-09-2012, 08:06 AM
Latest announcement is good news.Cavotec have brought competitor in aircraft ground support equipment manufacturer Combibox Systems.Combibox is Stockholm based.

percy
15-12-2012, 08:19 AM
12/12/12.
Cavotec wins shorepower equipment orders at Port of los Angeles.Tighter legislation regulation omissions at ports means vessels switch off their engines while docked.

percy
05-01-2013, 06:31 AM
Good to see Cavotec reach 24.50 SEK NZ$ 4.50 last night.
Nice start to the year.

percy
13-03-2013, 12:47 PM
Another very good presentation and a fine lunch!
Presentation included film clips on shipping using Moormaster,power units,reals etc.Certainly a great range of products.
The clip on airports was equally impressive with popups,for fuel,sewage,power units etc.
The chairman told how some products developed for aircraft [cooling] could be used in mining.So plenty of organic growth.
Order book is very strong.Appears increase sales allows them to increase margins.Very positive out look.The last year was Cavotec's best and they intend growing on that.The business is spread50/50 between mature and developing countries.The SP hit 30.00 SEK but is back at $27.80 overnight.
The chairman did say "while the share price may flutuate the business is improving all the time,"

percy
13-07-2013, 06:56 AM
More big sales of Moormaster in Norway.
Very positive innovations.
Updates available at www.cavotec.com

percy
09-08-2013, 06:44 AM
Another very good quarter.Good to see them delivering Moormaster units to The St.Lawrence Seaway.

percy
18-09-2013, 11:20 AM
Taken a bit of effort to break the Swedish Krona $30 ,but we are through it on no news to SEK $32.[NZ 6.00]

percy
05-10-2013, 06:28 AM
I sold out before yesterdays special meeting. My reasons are;

They are on a growth trajectory and any profit generated will be ploughed back into the business and not distributed to share holders.

The transaction costs in trading my small parcel on an overseas exchange would have been large.

Despite our parting I believe the Cavotec has a bright future and wish the company and shareholders all the best.


Boop boop de do

Marilyn

Yes you were right to predict Cavotec have a bright future.Shares have gone from NZ $2.70 to $6.12.

percy
22-11-2013, 07:48 AM
Just when I thought CCC.ST had gone off the boil,they have two fantastic wins.Both announced 20/11/2013.
Cavotec awarded shore power equipment orders worth EUR 12 million.
Cavotec wins largest Moormaster automated order to Port of Ngqura {Port of Elizabeth,South Africa].
Long wave and high winds are a problem there."The automated mooring units are expected to dampen vessel motion by as much as 75%"