arccon, page-23

The market is struggling to price in the Arccon value as the company hasn't issued any financial details other than FY2012 group EBIT @ 26M. That's 9c per share fully diluted. This stock is going to fly, but only once management release details of how Arccon will change the financial performance of the group. The comparison to GNG is a bit much as GNG is a cash generating machine and although AZG is forecast to do similar EBIT numbers it doesn't have the cash in bank or the margins that GNG does. By all accounts, if AZG hits 26M EBIT for 2012 then it should be trading at 3 x current prices so huge potential for increase and minimal downside at current prices. I believe AZG will continue to acquire other companies and will be a significant player int he next couple fo years.

Disclosure: Significant holder of AZG shares