FGE is small WA based engineering company doing mining/civil...

FGE is small WA based engineering company doing mining/civil engineering work. has excellent detailed FY08 presentation 27/11/08 and detailed interim annoncement in 27/02/09. Also exc company website for those wanting to find out more.SP has risen steadily but mkt has missed the small ann on 18/06/09 that profit for FY09 has been adjusted up from 9.1m to 14.0million.

Lets do the stats.
# of shares: 68.3m
Current SP $0.60.
Mkt cap: 41m
normal NPAT 9.1m= EPS 13.2c=PE of 4.49
adjusted NPAT 14m= EPS 20.5c=PE of 2.93.

I estimate final div of 7c ffr (from EPS 20.4c)in FY09.
7c=11.67%=16.6% when fr.credits incl.which is true return.
At 7c the div is only 34% of NPAT for FY09 and only 53% of 'normal' earnings for FY09.

Weakness is exposure to delayed rare-earth project by Lynas.
But huge strength is strong client base in WA engineering sector including WPL(pluto) BHP, WOR along with civil work from WA govt. Also solid base of work in West Africa in gold sector!!

This sector on fire as it seems Gorgon will get go-ahead. I am convinced mkt missed the one-liner in June 2009 re profit upgrade due to previous accounting/tax calculations. I bought in this morning. FY09 results due any day now. def DYOR