around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:22, Friday, 25 February 2005

    Sydney - Friday - February 25: (RWE Australian Business News) -

    Oh no, here we go again.

    Car and truck retailer ADTRANS (ADG) yesterday announced that
    net profit rose 10.7 per cent in the first half and that it was
    confident of a "very good" result in the second.

    "Very", presumably, being anything better than 10.7 per cent.

    Despite the bright prospects Adtrans fell 8c to $3.65.


    STARGAMES's (SGS) first-half profit exceeded its guidance of 20
    days ago but the shares surprisingly didn't move.

    The poker machine maker lifted six-month net profit 44 per cent
    to $2.34 million, from $1.63 million in the year-earlier period, which
    comfortably beat the February 4 guidance of $2.2 million.

    Stargames says it expects stronger profit performance in the
    second half, although market conditions have been difficult in January
    and February.

    Based on the current market outlook, and assuming regulatory
    approvals for new Stargames products and games are obtained in the
    normal course, Stargames continues to anticipate a net profit for the
    full year of up to about $8 million, equivalent to at least a
    double-digit increase on last year.

    That'll be well into double digits.

    Net profit last year was $6.7 million so $8 million would be a
    rise of more than 19 per cent.

    Stargames was steady at $1.59, down from the high of $1.69 on
    February 1, but well up on $1.05 a year ago.


    It's good to see LUDOWICI (LDW) come good after our write-up.

    It shot up 19c to $4.89 yesterday, which is up from $3.05 a
    year ago.

    The company reported net profit rose from $4.67 million to
    $5.75 million in the year to December 31 and earnings per share
    increased from 30.8c to 35.8c.

    P/e is less than 13 so the price is not excessive.

    A final dividend of 12c, fully franked, is payable on April 28
    and makes 20.5c for the year, or a total 31.5c if you count the special
    11c paid in June.

    The company says prospects for 2005 are favourable.

    The strength of the mineral commodities markets continues to
    sustain strong Australian demand and international expansion in
    minerals processing, and Ludowici's other businesses are all
    forecasting improvements in profits over 2004.


    Being a billionaire means you don't have to be able to

    PBL executive chairman James Packer in the 26 per cent profit
    rise announcement yesterday said, "The Australian economy remains
    robust, with PBL's business's [sic] benefiting from strong growth in
    both consumer and advertising spending and with PBL's solid earnings
    growth reflecting the diversity of its business mix."

    PBL fell despite the profit rise (a lot of companies fared
    similarly yesterday) and lost 68c to $14.87 in the initial selling

    But then, in a comeback worthy of Lazarus, it closed at $15.50,
    down only 5c.

    The shares have been easy since touching a record $17.58 on
    December 30.


    When a company starts off its results statement talking about a
    sales rise it's a bad sign.

    Such as hardware and garden products supplier DANKS (DKS),
    which yesterday opened by saying sales rose 4.2 per cent to $11.9
    million in the half-year to December 31.

    It wasn't until the end of the statement that the company got
    around to saying - oh, by the way - net profit was down to $3.7

    Danks shares didn't trade yesterday.


    GREEN'S FOODS (GFD) shareholders were feeling low after net
    profit slumped 46 per cent to $2 million in the first half and the
    company cut dividend.

    Directors' view of the outlook did not lift the gloom.

    "The focus for the remainder of the year is to reap the rewards
    from the work done to date on prioritizing our portfolio and improved
    focus on retail customers, and benefit from cost and efficiencies gains
    in the cereal plant," they said.

    Now what did that mean?

    (Comments and complaints to [email protected] - no requests
    for advice please.)


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