Although tempting to buy on the dip ... do not ignore today's sharp price drop - there is a reason for that - look into the report again and you will see plenty of warning statements:
"..Market and operating headwinds to AGL’s margin from the maturing of lower cost gas supply contracts and sharp falls in wholesale prices for electricity and renewable energy certificates [...] depreciation expense will again be higher following the completion of recent capital investment programs and insurance, regulatory and compliance costs continue to rise. COVID-19 will lead to higher expected credit losses from customer hardship and potentially increased operating costs to ensure safe and reliable continued operation at AGL’s generation plan [...] Underlying Profit after tax to be between $560million and $660million in FY21. "
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As for cash management - planing paying special div when there is so much debt ? Come on - pay the debt first to the and then think of dividends. And ROE - has dropped to just 10% recently ! It is another warning sign---
So having 2.5bln debt , profit to drop by approx 50%, plenty of headwinds ... risky buy even at current price. Might jump temporarily - good luch to those buying now , but longer term it is not really such a great investment.
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- Ann: AGL FY20 Results & FY21 Earnings Guidance
Ann: AGL FY20 Results & FY21 Earnings Guidance, page-24
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Last
$10.66 |
Change
0.200(1.91%) |
Mkt cap ! $7.171B |
Open | High | Low | Value | Volume |
$10.47 | $10.75 | $10.46 | $32.97M | 3.101M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 449 | $10.66 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$10.68 | 35468 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 449 | 10.660 |
6 | 10553 | 10.650 |
2 | 7207 | 10.640 |
2 | 7216 | 10.630 |
3 | 20210 | 10.620 |
Price($) | Vol. | No. |
---|---|---|
10.680 | 35000 | 1 |
10.710 | 1458 | 1 |
10.720 | 8902 | 4 |
10.730 | 6733 | 1 |
10.740 | 6902 | 2 |
Last trade - 16.10pm 07/08/2024 (20 minute delay) ? |
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