Results look terrible! Only reason for the profit increase was the last acquisition. Apart from the energy department the other departments look to have run into a brick wall.
lol
Posted 18 August 2014 - 11:24 AM
Results look terrible! Only reason for the profit increase was the last acquisition. Apart from the energy department the other departments look to have run into a brick wall.
lol
Posted 18 August 2014 - 11:13 AM
Interesting.
There isn't one thing on those results that I don't like. Positive all round.
I especially like the CEO's commentary.
If you hold ADI do yourself a favour and go read through the results presentation.
This is a LT buy and you won't mind the current swings in price.
Once it's all digested we'll see the real direction ADI will go.
On a PE of around 20 I still think it's a buy.
By the way,
PickApprentice, I found the mistake in your calc below.
ADI had 108m shares in issue, not 10,8m. So the dilution effect is much smaller.
Also, they will issue the shares at a weighted ave price for the year - which was 352c, not at the current share price.
Dilution effect is only about 1 cent.
Posted 18 August 2014 - 10:38 AM
But down 4.1% today so far...
Results look terrible! Only reason for the profit increase was the last acquisition. Apart from the energy department the other departments look to have run into a brick wall.
Posted 18 August 2014 - 10:17 AM
Posted 18 August 2014 - 10:17 AM
Posted 18 August 2014 - 10:11 AM
But down 4.1% today so far...
Posted 15 August 2014 - 11:37 AM
I want to long ADI, but there is one concern that I have after reading its interim result.
The acquisition of Aquilon came with the following warranties:
The profit warranties are as follows:– R18,3 million profit after tax for the period 1 October 2013 to 30 June 2014 (2014 performancewarranty period). Should such profit after tax be achieved, shares to the value of R16,0 million shallbe issued;– R32,0 million profit after tax for the period 1 July 2014 to 30 June 2015 (2015 performance warrantyperiod). Should such profit after tax be achieved, shares to the value of R18,0 million shall beissued; and– R38,4 million profit after tax for the period 1 July 2015 to 30 June 2016 (2016 performance warrantyperiod). Should such profit after tax be achieved, shares to the value of R18,0 million shall beissued.Based on my interpretation, if PAT reaches R18.3 million, they will required to issue R16 million worth of shares, which will cause some sort of dilution. Assume Share price is at R8, it is the equivalent of 2 million shares. Currently, they have 10.8 million shares in issue.If one takes the 6 months interim result (PAT = 15 million) less the R 5 million profit coming from Aquilon, average it over 6 months and take 3 months of that (Oct to Dec 2013). It gives you R5 million. Now add the PAT of 15 million which gives you R20 million. So this is say that they will most likely have to issue the new shares.The question will be is the share price still attractive currently, consider that there will most likely be a share issue.Please advise
Interesting post and well argued.
I am not a capital structures expert by any means but that does make sense.
However, the information is not new news.
The market has known about the deal structure, including the warranties since Nov last year. And in that time the share price has doubled...
So not to much concern regarding the impact, especially given it's high growth rate.
The fact that they are achieving the R18.3m is also not a bad thing. Yes it triggers the share issue but ADI gave that level of profit as a warranty, hence by achieving it they are delivering on a promise. Not a bad thing at all in my books.
Posted 14 August 2014 - 11:40 PM
I want to long ADI, but there is one concern that I have after reading its interim result.
The acquisition of Aquilon came with the following warranties:
Posted 14 August 2014 - 08:32 PM
Magnet. Is 800 your target or are you just estimating the biggest resistance?
Sent from my D5503 using Sharenet Sharechat mobile app
Posted 14 August 2014 - 07:35 PM
Posted 14 August 2014 - 04:52 PM
Posted 14 August 2014 - 01:57 PM
I hope everyone who has been waiting for a pull back the last few months took advantage today.
Good support forming now above the R7 level.
In at 6.65 today - Out at 8.00 Next week!
Posted 14 August 2014 - 01:48 PM
I hope everyone who has been waiting for a pull back the last few months took advantage today.
Good support forming now above the R7 level.
Posted 14 August 2014 - 11:35 AM
Buying opportunity.
However, I am a bit concerned that a company announces a 50%-60% HEPS increase and the price gradually goes down 15% odd over 2 weeks. Was the market expecting more? Surely not...
I know I wasn't. And it's in line with the prev period's growth. PE a bit high but not too much for their sector.
We're back at Feb prices! With excellent results due on Monday! Market will react. 15% to be made if you can get in sub 700.
I've added upped my holding. Owned ADI for 2 years now since 130 levels.
If you remember from the last interim results The Oil and Gas acquisition only accounted for a single quarter towards HEPS (Also one of the best performing departments, if not the best) So a lot of upside here going forward.
Posted 14 August 2014 - 10:51 AM
Very good results... should move up again next week +10%
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Buying opportunity.
However, I am a bit concerned that a company announces a 50%-60% HEPS increase and the price gradually goes down 15% odd over 2 weeks. Was the market expecting more? Surely not...
I know I wasn't. And it's in line with the prev period's growth. PE a bit high but not too much for their sector.
We're back at Feb prices! With excellent results due on Monday! Market will react. 15% to be made if you can get in sub 700.
I've added upped my holding. Owned ADI for 2 years now since 130 levels.
Posted 14 August 2014 - 10:43 AM
Seeing some resistance around 675-690.......
Posted 14 August 2014 - 10:33 AM
order to add before those results released @660
ps. this stock is part of my long term port so my views are way down the proverbial road(5yrs+)
“melior diabolus quem scies”
Posted 14 August 2014 - 10:04 AM
Some interesting movement on this share, price has been draggin down the last 2 days.....now 680.
Posted 14 August 2014 - 09:25 AM
Some interesting movement on this share, price has been draggin down the last 2 days.....now 680.