FGE: Forge Group

Western Australian mining services company.

Held a position in this company for 1.5 years and sold recently due to a profit forecast that while still good, was below my personal expectations.

The price has come off a bit. Though the underlying fundamentals appear to be on the up with the company making three contract win announcements in the past month. These are signifcant contracts that are larger in size than previous contracts and shores up their FY12 order book. The company also holds $70m+ in the bank with minimal debt.

Risks in this company are standard construction project risks, likely reduction of margins as project sizes increase and its relationship with major shareholder Clough.

Stock on issue (options): 82,924,014 (3,245,000)
FY11 NPAT Guidance: $38.7 - 40.1m
FY11 EPS Guidance: 46.7 - 48.4cps

Worth watching.

Current Price: $5.24