Friday, May 15, 2009

Leigton Cuts profit forcast

AUSTRALIA'S biggest construction company, Leighton Holdings (ASX:LEI), has cut its profit forecast by 10 per cent after slashing the value of toll-road and infrastructure investments. Leighton shares fell more sharply than they had in more than a month, down 8.5 per cent to $22.26, after the group announced that after-tax profit was down 41 per cent for the first nine months of the financial year.The company said full-year profit would be about $430 million, compared with its February forecast of $480 million. Last year's profit was $607.9 million.

Keep in mind here that this is a construction company and they are going to be benefitted big by the budget. they are also looking at investing overseas. Further evidence this was "fear" forcing the sells is that analysts believe that "Leighton are a very well-managed company … given the fact that they've put on about $10 since the start of May, this isn't too bad. It wouldn't surprise me if we see this stock bounce back over the next couple of weeks."Opis Capital analyst Dean Fergie said Leighton was in a comfortable debt position and it was partly the "nature of the macro-economic environment" that these asset prices were slipping.
Worthwhile looking into as an investment.

Thursday, May 14, 2009

CSR wary on outlook after $326m loss

CSR Ltd (ASX:CSR) has emerged from its worst financial performance on record unwilling to provide shareholders with guidance on its prospects in the next year because of the uncertain economic climate.

The company yesterday reported a thumping $326.5 million loss in the year to March 31 after restructuring costs, asset writedowns and the impact of the slowdown on its key building products operations. The loss represents a huge turnaround on a previous profit of $177.4 million.

CSR managing director Jerry Maycock said it was one of the worst results he had ever delivered, and passed on the bad news to shareholders by slashing full- year dividend by 50 per cent to 7.5c per share, down from 15c. The company plunged into the red after significant items blew out to $460.5 million, which included a one-time charge for asset writedowns, restructuring costs and product liability losses.

Is this as bad as its going to get ? My thought is that it will get better for this company with the new budget Infrastructure spending. There may also be a rush to build homes in the next few months with the rush to ensure people take up the first bome buyers grant.

Good Luck

Back ...

Well its been a while but the market is back to a spot where we can start looking at it fundamentally again.

There are lots of stocks out there that need to be looked at so I'lls tart looking through the news again.

Good luck