CMV - Bargain A Sims Grp in Making...

[robbo]

CMA Group..-- CMV -

--Another Sims Group in the Making...?--

Good morning gals & guys

Yep .... CMA Corporation--ASX code: CMV... is the one imo right now...that has an easy 50-70% .... gains in 4-6 weeks from about now.

And ...***-- imo do not play with trying to "time the depth" and/or entry price....ie: imo only---- this is Margin of Safety --safe --up to 55 -57 ce. cents for entry into CMA..and 1- 2 months will give you easy 50%...imo ...

...Guys, I have highlighted or asterixed *** @**** ....etc etc the important points from their last Announcement from 2nd Feb 2007-- (2/2/07)-- was what .... caught my eye.....and still does.... catch my attention....

--CMA ANNOUNCEMENT – (ASX code: CMV).

CMA Reports Stronger First Half Result (ASX: CMV).

CMA Corporation Limited (ASX: CMV) today released its interim financial report for FY07.

In the six months to 31 December 2006, CMA posted an after tax net profit of $2.88 million on revenue of $104.0 million.

These results compare with an after tax net profit of $0.27 million and revenue of $37.3 million for the previous corresponding period.

Group EBITDA for the first half of FY07 was---*** $8.2 million, a substantial improvement on EBITDA of $2.05 million in the first half of FY06. @@ Note the **Big Tax Bill.... Guys , -this will come down due to the acquisitions and purchase of the headers. !! -

So Guys ,; if they (CMV)-- can get the Ebita based Full Tax down and repeat moderately the same success for the Full Year-- and keep up Npat Profits growth--...

Also Guys do imo , note this-

Basic earnings per share were 2 cents eps, so folks, , note this-->>-- *** **-- from 0.2 cents per share in the previous corresponding period.

CMA Managing Director Peter Hatfull said the first half result represented a significant rebound after a disappointing FY06.

Guys, note this-->>-- *** **“We are very pleased with the strong increase in revenue and the rebound in profitability,” said Mr Hatfull.

“These results reflect solid growth across the Group and a particularly good performance from our metal trading division.


Positive Immediate Outlook-- “We are currently enjoying buoyant conditions in the metal trading market and.....then....

.....Guys, do also imo note this-->>-- *** **.. we expect the strong demand for metal from our domestic and overseas customers to continue.”

“Trading conditions remain variable for our contracting division and our strategy moving forward is to focus on projects that support our metal trading business.”


And I personally like this-->>-- *** **Mr Hatfull said >>-- remediation was becoming an increasingly important business activity for CMA and that he expected contract work in this area to add real value to the Group in the second half.


So fellow S/Traders; , recall that ---****---- During the period CMA announced the expansion of its metal processing and contracting capability through the acquisition of the T & T Metal & ...Asbestos ... Services Queensland business and the J&M Metals business in Port Hedland, Western Australia...... (That is getting rid of Asbestos by the way !).....

The Group took further steps towards building its national infrastructure through the purchase...and folks also ---imo-- note this-->>-- *** **of three baler shears metal processing units *** providing the ability to .....significantly enhance the value of ....metal..... processed at its collection yards.

Mr Hatfull said the recent purchases have enabled the Group to establish.... And I like this bit.-->>-- *** **.. A strong platform for growth.

Cont’d./Page 2

This week, CMA announced that it had entered into a conditional Share Sale Agreement to acquire Southern Rocycling, the Victorian-based national scrap metal group. ...

CMA has commenced due diligence on the acquisition, which is also subject to shareholder approval and funding arrangements.

[ohmyme]

Interesting pick Robbo. On the surface this looks like an absolute bargain, especially based on the bullish commentary backed by massive increase in net profit and revenue results for the half year.

Based on some conservative calculations its not too difficult to build a case for CMV dropping $10million NPAT for the full year. Their trading division is experiencing strong growth, and accounted for 100% of the profit in the first half. So if they repeat that performance, we have $6million. If they squeeze profits from the contracting division and we add in some profits from the latest potential acquisition the numbers quickly compound.

Thanks for the heads up.

cheers.

[robbo]

quote:Originally posted by ohmyme

Interesting pick Robbo. On the surface this looks like an absolute bargain, especially based on the bullish commentary backed by massive increase in net profit and revenue results for the half year.

Based on some conservative calculations its not too difficult to build a case for CMV dropping $10million NPAT for the full year. Their trading division is experiencing strong growth, and accounted for 100% of the profit in the first half. So if they repeat that performance, we have $6million. If they squeeze profits from the contracting division and we add in some profits from the latest potential acquisition the numbers quickly compound.

Thanks for the heads up.

cheers.

.
--------------------------------------------------------------------

CMV Corporation.

Hi ohyme,

(CMV)....Yeah a very impressive analysis & short summary you make ehre on CMV-- ohyme.....

....Ohyme; CMV is a real "lay back on the hammock and snaffle 70 % + Gains-- "-- with no downside-- in a short time ----sort of stuff.

ON a PE of only 14-- that $10m-- would put 130% extra- Over & Above-- on the Current CMV-- share price by August....

Trying to do a ring around now--to see when the next catalyst/positive possible developments or news coming up for CMV -- and will come back before the close if I find anything...

They certainly have a stack of stuff now that is earnings accretive.

This (CMV) has a slight ring of a hybrid between Austin Engineering(ANG) and Boom Logistics(BOL) days about it ohyme...

-btw--did you get any Austin Engineering-- ANG when I flagged it at 38-39 cents before (mid last year) ) ohyme....?

Kindest Regards,

Robbo

DISCLAIMER
Views expressed in and on this Internet Chat Site Forum, as expressed above are; explicitly unwarranted, and expressed on a strictly: ‘Without Prejudice’ basis.. These views are only personal opinions and speculations, are definitely not warranted, in any way whatsoever, either expressed or implied, for their accuracy or veracity. These opinions & correspondences, expressed in this email and/or on this internet site are only the writer’s tentative thoughts and opinions only. Remember, they are, nothing more than that. These views are not…. (Repeat: ‘not’ …)…to be read as being, or even forming any form whatsoever of investment recommendation, general or specific. Instead, they are just simply personal ideas and opinions, and to repeat, are NOT to be read, taken, or interpreted as financial advice. These expressed opinions written here, are not warranted in any way whatsoever, either expressed or implied, for their, authenticity, or likely predictive outcome. Therefore, these comments are highly subjective, not the basis of officially authorized research, and are therefore likely to be prejudiced by the writers own opinions, perceptions, interests, and outlook. As a result, these views may be prone to errors, as they are not objective, or official in any way, and, have not been checked by an authorized third party, and are possibly incomplete, ill informed and/or inaccurate. With this in mind, the author repeatedly reminds readers, that these opinions expressed here; are strictly on a “Without Prejudice” basis only. Remember readers, to read these opinions as just one of many expressed personal subjective thoughts and ideas, in the ‘common market-place of ideas’—and to read these views in this light and as only that. Readers must recognize that, as these views, are only one viewpoint among many possible other viewpoints, they are therefore at best; only the author’s own highly subjective whimsical thoughts, impressions, and intuitions. You therefore ought not, repeat ‘not’, to rely upon these views for any form of advice or counsel. Instead, you are responsible for your own decisions. Readers must also note

[corky]

Also picked by my favourite writer Trevor Hoey in the AFR on Weds as a small cap/big yield stock. He has it on a 2008 P/E of 7 (2007 P/E 10) and a div yield of 7%. Cites contribution from recent acquisitions and management desire to undertake more site remediation work.

Holding some
Corky

[robbo]

CMA Corporation.... ASX Code: CMV....

HI Corky,

Good research and spotting --vis a vis ---the AFR Corky....

Like you Corky; I too, like the AFR's Trevor Hoey's various Stock Pick press Coverages; and his thorough & balanced analyzes.

Hoey is quite succinct and insightful..... wish their were more AFR writers of his caliber.

Yep, I really like CMV-- "pound for pound"-- especially, as benchmarked against CMV's own Industry Sector Peers--,...

And the relative Intrinsic Value/Margin of Safety Combination-- in CMV ---to be had now-- rated highly alongside the immediate tangible high probability of current time High Growth Prospects; ..yep--agree with you Corky and I do Rate CMV Highly at present share prices-- ...Easy 70% stock price gains imo-- here over maybe next 2 months, but at the most, 3-4 months max.... imo.

Kindest Regards,

Robbo

[robbo]

CMA Corporation-- CMV-- Forecast CMV Earnings increase of 220%

*** Just got this (re. CMV)-- brought to my attention; at the PUB-- [/quote]

Aspect Huntley Research Analyst-- says CMV due for pending 220% Earnings Increase...--for this period pending, June 30...2007

According to:-- independent ASPECT - Huntley's Research--which admittedly is just one Broker's Research Analyst ..... says CMV's forecast for increased .... Earnings Growth ... for next Current Period (2007) will come in.... at 4.00 cps (cents per share)--..which they state; is a 220% Earnngs increase year on year.

Kind Regards,

Robbo

--------------------------------------------------------------

at [quote]quote:Originally posted by davidrob

CMA Corporation.... ASX Code: CMV....

HI Corky,

Good research and spotting --vis a vis ---the AFR Corky....

Like you Corky; I too, like the AFR's Trevor Hoey's various Stock Pick press Coverages; and his thorough & balanced analyzes.

Hoey is quite succinct and insightful..... wish their were more AFR writers of his caliber.

Yep, I really like CMV-- "pound for pound"-- especially, as benchmarked against CMV's own Industry Sector Peers--,...

And the relative Intrinsic Value/Margin of Safety Combination-- in CMV ---to be had now-- rated highly alongside the immediate tangible high probability of current time High Growth Prospects; ..yep--agree with you Corky and I do Rate CMV Highly at present share prices-- ...Easy 70% stock price gains imo-- here over maybe next 2 months, but at the most, 3-4 months max.... imo.

Kindest Regards,

Robbo

[mamos]

Have done a some research on CMV.

Comparison with Sims Group.

Sims is on a PE of 12 based on its HY07 results and CMV is at 11.6.
This suggests that CMV is fairly valued. However, perhaps CMV deserves a higher PE ratio given its greater growth prospects, both organic and from acquisitions, than Sims.

Does anyone know when and from what date the earnings from new acquisition T & T Metal & Asbestos Services (Queensland) business, J&M Metals business in Port Hedland, Western Australia and Southern Recycling will be represented in the a/cs?

Once the contracting business can start contributing to earnings we will see further earnings gorwth. It seems the problem is under-estimating the costs and difficulty involved in the projects it undertakes.

What are the other industry peers that a comparative analysis could be performed on.

Cheers

Mark

[robbo]

CMA Corp-- CMV...

ahaha,,, mamos,

You are trying to wind me up... I know........ anything you
say mamos !!

cmv has a totally different profile to sims metal-- for a start the return on equity and earnings growth is in three and nearly four figures for cmv-- ...

But I know you know that--and are trying to dampen the deal before you enter--CMV----ehhhhhh Mamos....you are a naughty naughty boy mamos...!!

Cheers,

robbo

[mamos]

Hi Robbo

Sorry Robbo don't mean to put a dampner on the thread.

I agree that CMV deserves to be on a higher PE than Sims, however as long as management can perform as they have this HY and improve this by integrating the acquisitions into their business model a re-retaing will be due.

By my calc I have a full year ROE (assuming same results as HY) of 12% for CMV and 19% for Sims. The return on Market Cap is 8% for both.

Disc. Do not hold at the moment. Looking to enter after more DD is completed.

Cheers

Mark

[robbo]

CMV.

Hi Mark,
Excellent to see you do Due Diligence...that is definitely one of your true strengths Mark...always impressed by your prudence & dd....[^]

Good balanced post mark

regards,

robbo