LOGIN
FREE REPORT
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

CIM

Why Is CIMIC Group Up 44% Today?

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

CIMIC Group (ASX: CIM) rallied 44% today after the ASX index rose 3.7% in the open. This is a far cry from the highs above 7,000 points which we saw a few weeks ago. With the ASX currently in a bear market, several companies managed to rebound from yesterday’s heavy sell-off a result from the increasing Coronavirus cases. CIMIC Group is one company that managed to stand out in the bear market today.

 

 

CIMIC Group is an international contractor that provides services in the telecommunication, mining, infrastructure industry, and energy sector. The company has a history of success in the Middle East, Southeast Asia, Australian, and New Zealand. However, last year the company had to exit the middle east after facing many problems with a project and a deteriorating market condition. This resulted in a weakened cash position and this resulted in the company scrapping the final dividend for 2019.

Whilst the departure in the Middle East saw the share-price tumbling down by 19%, the company has managed to pick up momentum by successfully securing two contracts in Australia. The contract in Adelaide sees CIMIC’s group subsidiary UGL, operate and maintain the tram and bus network for eight years. This contract would generate more than $180m. Additionally, the company has also secured a $450m contract in oil and gas maintenance in Western Australia. Market recognition is a natural competitive advantage for the company, and we can expect it to be reflected in the next financial report. 

 


Disclaimer:


This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.
ASR has no position in any of the stocks mentioned.

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.