Ausgroup

Ausgroup: outlines vision to expand the co to a $1b business based on committed iron ore, coal and LNG projects in Western Australia and Queensland. The co posted A$602m revenue in FY11. The announcement comes on the back of the appointment of CEO, Laurie Barlow as its latest Board member. Barlow says he will use experience from his previous positions with Fortune 500 companies, to encourage Ausgroup to focus on bottom line and better project mgt. The announcement was short on further details. Nevertheless, Ausgroup may see spillover interest in sentiment following Civmec’s recent meteoric share price rise. Civmec breaks the $1 psychological barrier today. (See yday’s posts from 9.28am to 9.37am). Ausgroup trades at 6.3x P/E, vs Civmec’s 59.6x P/E, with the valuation disparity a result of market pricing in much stronger growth expectations for the latter.