CCC - Cavotec MSL

[Lizard]

Download the tidy first half result from here.

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]

Nice announcement from Cavotec today:

1. One new MoorMaster order (Eur 500k)
2. Open-ended business established with a division of Chevron (for MoorMaster application development)
3. 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]

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]

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]

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]

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

[Lizard]

Another little contract in the news:

Cavotec MSL wins Iron Ore Handling Equipment etc.

[Nevl]

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]

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.

[Nevl]

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.