NLX 0.00% 6.4¢ nylex limited

announce tues 13 sep, page-4

  1. 706 Posts.
    I don't know them so I've looked them up:
    Activity Summary - Pacifica (PBB) is an Australian-based industrial manufacturing company with strong market positions in NZ, the US, Asia, and now Europe and the Middle East. The Automotive group has been the main growth driver for the company and manufactures brake callipers, park brakes and friction materials under the PBR and Bendix Mintex (JV) brands. The Construction Products group is being divested with Lionweld Kennedy and Webforge sold. Efforts to sell the small Melwire business are ongoing.

    Investment View (overall) - Operating in difficult auto markets, PBB has shown an ability to win new multi-year contracts with leading domestic and foreign car manufacturers, but the concentrated nature of its customer base has led to an increasingly volatile profit history. The March earnings downgrade from key customer, General Motors (20% of PBB’s NPAT), gives an indication of the tough conditions PBB’s customers are experiencing.

    Investment View (over the next 12 months) - Following the 1H05 earnings result, we have retained our SELL recommendation. We acknowledge that PBB trades on cheap FY06-07 earnings multiples, however given the company’s poor earnings history and uncertainties regarding exchange rates, pricing pressure from customers and raw material costs, we believe evidence of some sort of operational improvement is needed before reviewing our recommendation.
    -------------------------------------
    Activity Summary - CMI is an Australian-based company whose operations centre around:
    (1) the manufacture and distribution of automotive, 4WD, heavy transport, electrical components and accessories through 14 facilities in Australia, New Zealand and the US.
    (2) financial services through its fully owned subsidiary Capitalcorp Finance & Leasing Pty Ltd which operates from 31 offices throughout Australia.

    ------------------------------------------------

    You might be right I wouldn't know.
 
watchlist Created with Sketch. Add NLX (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.