Wagners Holding Company Limited

ASX:WGN

Wagners Holding Company Limited

ASX:WGN
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$3.52 (-0.6%)
Last close price
#326
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2
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Forum Topics WGN WGN Bull Case

Pinned straw:
Mort
Added 8 months ago

Potential case for a take over, following boral take over from SGH.

Founder lead company and Insider buying. The leaders holding 11.36%.

Also QLD base company so hypothetically in the next 5 years the Olympics construction will be in full swing.

Any thoughts?
thetjs
Added 8 months ago

Hey @Mort

Have been looking at this company due to the upcoming games.

RE takeover. I think that will be a challenge unless the Wagner family want to sell. That circa 11% is per brother and overall I believe the family either directly or indirectly owns 50% of the company.

At the moment I’m keen to see their next two quarterly’s following the completion of their major project contract.

My half baked thoughts are to see if there is a substantial change in the SP as the revenue falls off as they have no immediate (to my knowledge) major projects to continue the revenue at the same level (they’ve also started to tighten up on costs because of this). Then pick up a small holding with a view to the SP increasing with any contract awards associated with the games.

I do think there has already been some buying with this in mind given the stock is up a fair bit over the last 12 months but hoping their may be some sellers once the major project revenue drops (which has been its driver for strong revenue increase over the last few years) and nothing confirmed in the pipeline.

Thoughts?

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lowway
Added 8 months ago

I tend to agree with @thetjs regarding the potential for a takeover or buyout @Mort.

The Wagner family have had a strong hold on the shares for some time now (including when the won their court case against 9 network for claiming they or their quarry wall at Grantham caused the devastating 2011 flood in Grantham during the big Brisbane River flood).

I also think @thetjs has the right strategy for a wait and watch strategy for any purchase, as they will need to actually win some large pieces of the huge infrastructure projects planned for SE Qld to cater for the 2032 Olympics, to get back on track.

A quick read of their Q1 report showed they have already commenced scalling up their successful materials business by starting 4 new concrete plants (crtical for all of these big upcoming projects). However they may find any continued push in their composite fibre technology (CFT) into the USA could hit a wall with the tariffs, etc (but this is not a massive part of a growth plan when SE Qld kicks off).

I do like $WGN as an Olympics play, particularly with their connections into State and local Govt, their ability to ramp up concrete and quarry materials and, of course, Wellcamp airport and its role for 2032 games for the Equestrian component of the games to be hosted at Toowoomba and the upgrades to the local area for this event. I reckon Wellcamp airport will also be used for a host of other (security) reasons up to and including 2032.

All in all, a good one to watch from my perspective, thanks for the initial post @Mort !!

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Mort
Added 8 months ago

Thanks for your thoughts.

I'll put it on a watch list and wait for some results.

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