daytrading nov 29 morning, page-2

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FGE

Macquarie rates FGE as Downgrade to Underperform from Neutral (5) -

The broker became a little wary last month on contract timing slippages before downgrading Forge to Neutral from Buy. Slippages have become major contract write-downs for the company to the tune of $127m, which sees the broker swing its FY14 forecast earnings to a sizeable loss and reduce FY15 earnings by 87%.

History suggests first estimates of contract losses are rarely the last, the broker warns. Target cut to 50% of net tangible asset value, to 43c from $5.34. FGE will need equity, the broker insists. Downgrade to Underperform.

Target price is $0.43 Current Price is $0.69 Difference: minus $0.255 (current price is over target).
If FGE meets the Macquarie target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Macquarie forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 88.40 cents.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.77.
Market Sentiment: 0.3