Barring some solid director purchases in the mid 50c range it has been a quiet few months since annual results. Engenco has been going through a low growth phase where consistant profitability, balance sheet strength and cashflow growth have been the highlights. These factors have enabled an increase in the dividend payout. My interest is in seeing some growth in sales in 2021 and progress toward development of the recent land acquisition at Forrestfield. We haven't seen any significant business acquisition for some time now, perhaps valuations are challenging - I know how that feels.
In this narrative-driven, euphoric market environment profits and historical performance have very little capital in investor's value assessments. Engenco couldn't be further from the minds of the current crop of speculators.This has provided a couple of opportunities to pick up some stock in a good old-fashioned "value" company over the last couple of years. The shares have become extremely tightly held which is a nice position for existing shareholders to be in.
Deloitte Access Economics have generated the following chart which shows a good growth profile for the rail industry over the next two years.
A couple of quotes from the report:
“The total value of infrastructure projects underway in the Investment Monitor database is set to reach $225 billion in 2022,”
“To put that in perspective it’s more than the amount spent during Australia’s liquified natural gas boom."
"Deloitte Access Economics is forecasting private business investment to return to positive growth in 2021 before accelerating in 2022"
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