around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:27, Tuesday, 8 February 2005

    Sydney - Tuesday - February 8: (RWE Australian Business News) -

    We started following SUNLAND GROUP's (SDG) fortunes a couple of
    years ago when the shares were well below $1.

    Yesterday it rose 18c to touch a record $2.45 after yet another
    profit warning ... a warning that profit will be higher than predicted.

    The group now expects its profit for the year to reach an
    historic level of more than $72 million, 20 per cent higher than the
    profit guidance of $60 million highlighted at the annual meeting in

    The latest forecast is 31 per cent higher than the net profit
    of $55.2 million reported for the year to June 30 last.

    "This exceptional profit forecast is based on the solid
    performance from all divisions of the group (comprising land, housing,
    highrise and hotels), specifically construction of the major high rise
    projects such as Q1 and Circle on Cavill in Queensland, and Yve in
    Victoria," directors say.

    Despite the latest rise p/e is still less than 8 and it was the
    low p/e that attracted us in the first place.


    How times change.

    It wasn't all that long ago the mere mention of a retractable
    syringe brought the punters running.

    IMD GROUP (IML) yesterday reported that Health Canada's
    Therapeutic Products Directorate have issued a Medical Device Licence
    approval for IMD's manual retractable syringe range of products which,
    IMD said, was a milestone to "fully assess and evaluate the Canadian
    market as a potential distribution outlet for its manual retractable
    safety syringe range".

    The shares remained at 17c.


    INFOMEDIA (IFM) solemnly said that "under the continuing
    disclosure requirements of the ASX, the directors today advised the
    following ..."

    The company now expects its full year net profit, before
    significant items, to be in a range of $13 million to $15 million.

    Unfortunately the "disclosure" in yesterday's statement did not
    extend to provision of last year's profit.

    We had to go look it up ... again.

    Last year's profit was up 13 per cent to $20.7 million so this
    year's worst case scenario is a 37 per cent fall to $13 million (or
    more than 42 per cent to $11.9 million after significant items).

    The market was not worried.

    The shares slipped only 1c to 69c.


    It's difficult to predict how the market will react.

    LION NATHAN (LNN) yesterday warned the market beer sales had
    staggered near the end of the first quarter to December.

    However, at the same time it reassured shareholders it expected
    net profit for the 2005 fiscal year would be within the $230 million to
    $235 million guidance already provided to the market.

    You'd think the company had called in the receivers the way its
    shares plunged 58c to $7.57.

    Rival FOSTER'S GROUP (FGL) relished the news.

    It rose a further 5c to $5.40 to continue a bounceback from the
    recent low of $5.08 last Monday.

    Its 12-month high of $5.90 was reached on Deember 29.


    TANAMI GOLD (TAM) advised the market yesterday the upgraded
    "Global Resource Estimate" represented an increase of 83,700 ounces
    from the previously published "Global Resource Estimate".

    Yup, that would be the one.

    By the way, it was up TO 655,699 ounces.

    The shares rose 1c to 15c.


    Copyright © 2005 RWE Australian Business News. All rights reserved.
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