Apsec put a buy recommendation out today on AZG with a target of 60c
Returns1.TheannouncementofFY2012resultsinAugust/SeptemberisexpectedtoshowthatAZGhasgeneratedrevenueof$130mandearningsof$13m.AZGMarketCapiscurrentlyapprox$35m,placingtheshareonanextemelycheapP/Eratioof2.7x.ThisshouldbeavaluationcatalystasthiswillshowhesitantpotentialinvestorsthatAZGcanexecutesuccessfullyanddeliveronitspromisesattheametimeasmakingthestockappearcheaptoanyonefollowingafundamentalstyleofinvestingbyrunningstock screens/searches. 2.Confirmationthatthepreviouslydelayedprojects,whichcausedthedownwardrevisioninprofitguidanceforFY2012on27April2012aretogoaheadwithin2013asplannedwillprovideconfidenceintheablityofAllminetogeneratesustainedfutureprofitability. 3.Theannouncementofnewcontractwinsdrivinggrowthinrevenueandprofitabilityandbuildingscale,itisparticularlyimportant they show growth from areas other than under MCC and a first EPC contract win. 4.Theappointmentofadditionalstafftomanageinvestorrelationsandpublicity,andbuildingrelationshipswithstockbrokinghouses should bring greater awareness of the stock and provide additional share price support.
AZG Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
