When you think about it if the new acquisitions live up to expectations & follow on previous profit lines & guidance for CMV before acquisitions we could be looking at a really bumper 2007/08.....Don't like to quote numbers & haven't checked if there were any abnormals in Southern's last financial year but profit for the CMV machine in 07/08 could be quite substantial, especially if the remedial division can turn around as predicted.
Couple of hopefully smaller court cases to sort out for Southern is the only small negative in the takeover/merger that I can see.
Scrap prices are predicted to remain high & diversification in CMV to other areas gives us added revenue streams & a bit of a broader base to build from.
Throw in Man Metals (or whatever they were called) & it all adds up to a nice little semi bullet proof company with a large future.
I'm sort of hoping that carbon trading will add to the CMV machine's appeal when it comes in (Which it looks like doing eventually)...but haven't looked to deep as yet. If anyone has info on similar overseas company's that benefitted from Carbon trading, love to hear back?
I know some metal smelting companies will feel a bit of pain from carbon trading but hopefully scrap will be looked on favourably & the remedial side of things, + asbestos section should gain some benefits from a greener outlook???
All looks good & CMV currently underpriced imo....If you consider (Possible) forward returns... we could be looking at FF dividend yields of around 15% / year going by todays prices in the not too distant future. (Going by my rough calculations 2007-08/2008-09). Hopefully they will continue to build from there......Sounds a bit high but that's how they pan out, do the numbers!
Return is due imo & they should have the cash to provide....I'm guessing a small return this year (1c?),if you add in the recent rights issue & a bit more if you leave them out. 4th July is when new issue hits the boards so they may have the leeway to move either way, but i'm guessing, if a return is forthcoming this year they will reward those who took up the rights issue.
My thoughts only & they may chose to hold cash for growth but I'm still confident going forward...Stronger for longer :)
(The mining boom will end one day, nothing lasts forever).
Luck All
CMV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
