It's proving to be a rather flat end to the trading week for the All Ordinaries Index (ASX: XAO) so far this Friday. At the time of writing, the All Ords has lost a meaty 0.62% and is back down to around 7,280 points.

But this gloom is certainly not extending to all corners of the share market. In fact, there are a few ASX All Ords shares that are knocking up new 52-week highs today. Let's go through some of them.

3 ASX All Ords shares hitting new 52-week highs today

NRW Holdings Limited (ASX: NWH)

Mining construction company NRW is our first All Ords share to check out today. This company has had a pretty pleasing day of trading so far this Friday. it's presently up a healthy 0.88% at $2.28 but rose as high as $2.30 earlier this afternoon. That is NRW's new 52-week high.

Now we haven't gotten any fresh news out of the company that might explain this new high. But NRW has been on the rise ever since reporting its results for the 2022 financial year back on 4 August. This included a guidance upgrade, so it's not hard to see why investors are excited.

Pacific Current Group Ltd (ASX: PAC)

Fund manager advisory company Pacific Current Group is next up. This All Ords share has had an even better trading session so far today. The Pacific Current share price is currently up a pleasing 5.93% at $8.58 a share.

But we saw this share price rise even more enthusiastically this morning, going as high as $8.77 – the new 52-week high. It's hard to see what might be sparking this rise, since there is again no fresh news out from Pacific Current since 29 July.

GR Engineering Services Ltd (ASX: GNG)

GR Engineering is our final ASX All Ords share to check out today. This company is… well, it's all in the name really. It provides engineering services mainly to the mining and construction industries. GR Engineering shares are currently up a robust 1.72% at $2.36 a share.

But we saw this share climb as high as $2.39 this morning, which is, you guessed it, the company's new 52-week high. No new announcements out here either, but this seems to be an extension of the incredible run GR Engineering has been on since late June.

Since 28 June, the company has gained close to 40%. That coincides with that is evidently a well-received guidance update for the 2022 financial year.

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The GR Engineering Services Ltd (ASX: GNG) share price is racing higher on Monday. This comes after the engineering company announced an update on its full-year revenue guidance for FY22.

During late morning trade, GR Engineering shares are fetching $1.885, up 7.10%.

GR Engineering eyes strong growth for FY22

Investors are driving up GR Engineering shares following the release of upgraded revenue guidance by the company.

In its statement, GR Engineering advised that favourable trading conditions have continued to run into the new financial year.

As a result, the company upgraded its revenue guidance for the period ending 30 June 2022. It expects its full-year revenue to come in between $540 million and $560 million, reflecting a sizeable increase.

Originally, GR Engineering had forecast FY22 revenue for the same period to be around $440 million to 460 million.

The company seems to have avoided the impact of the recent constriction of the labour market in Australia. It says it has managed to navigate its way through COVID-19, increasing its workforce to meet demand and deliver on projects.

GR Engineering managing director Geoff Jones touched on the company's improved revenue guidance, saying:

GR Engineering is forecasting significant growth on the record results achieved in FY21. The pipeline of ongoing and near-term work is growing and provides increased revenue and earnings visibility for both FY22 and FY23, enhancing GR Engineering's ability to deliver returns to its shareholders.

GR Engineering share price summary

Over the past 12 months, the GR Engineering share price has soared, representing an 85% gain for shareholders. Throughout the year, the company's shares have continued on an upwards trajectory.

It's worth noting that the GR Engineering share price is currently a whisker away from its multi-year high of $1.96.

Based on today's price, GR Engineering commands a market capitalisation of roughly $302 million with approximately 160.88 million shares outstanding.

The post GR Engineering (ASX:GNG) share price storms 7% higher today on FY22 guidance update appeared first on The Motley Fool Australia.

The GR Engineering Services Ltd (ASX: GNG) share price is soaring on Tuesday as the company reported its FY21 results.

The GR Engineering share price is now trading at $1.64, a 12.71% jump into the green.

Let's uncover how GR performed this year.

GR Engineering share price lifts on record revenue and strong earnings

The company outlined a number of investment highlights in its report, including:

• Record revenue in FY21 of $392.4 million, also a 76.4% year-on-year growth schedule
• All-time record EBITDA of $37.2 million, up from $11.3 million the year prior
• Strong operational cash flows with cash at bank of $69 million – an 84% year-on-year increase
• Profit before income tax (PBIT) of $33.7 million, from a loss of $9.7 million
• Net profit after tax (NPAT) of $14.9 million, up from a loss of $4.7 million a year ago
• Final dividend of 7 cents per share, fully franked.

What happened in FY21 for GR Engineering?

The company outlined several progress points that could potentially impact the GR Engineering share price.

The most notable takeout from GR's FY21 earnings is that it recognised record revenue of $392.4 million, which also signifies a 76% year-on-year growth.

Moreover, the company also achieved its record EBITDA this year of $37.2 million, a 292% increase.

In addition, GR reversed the loss it posted in NPAT and PBIT last year, growing both figures to around $15 million and $34 million respectively.

Moreover, the company also detailed several project completions in FY21, such as the Thunderbox past plant project and the Lake Way Potash project.

As well, the company announced a final dividend of 7 cents per share, fully franked, up from 5 cents per share in April 2021 and 4 cents per share in October 2020. Thus, shareholders will enjoy total dividends of 12 cents per share for FY21.

As such, the company recorded earnings per share (EPS) of 14.9 cents per share, well up from a loss of 4.7 cents per share in FY20.

GR Engineering consequently left the year with a net operating cash flow of $49.5 million, up from $11.2 million the year prior.

What did management say?

GR Engineering managing director Geoff Jones said:

GR Engineering achieved multiple project completions in FY21 that were on time and on budget. The safe and successful delivery of these projects reinforces GR Engineering's reputation as a proven process engineering design and construction contractor.

Looking forward, Jones added:

Based on GR Engineering's strong order book and balance sheet, the business is well placed to continue to deliver returns to its shareholders through FY22 and FY23.

What's next for GR Engineering?

According to the company, GR has a "strong order book" that is concentrated in Australian projects.

Moreover, it has been "building its pipeline for both FY22 and FY23" and forecasts FY22 revenue in the range of $440 – $460 million.

In addition, GR's order book contains five works that "will continue into FY22", with an additional five work opportunities in the pipeline.

The GR Engineering share price has posted a year to date return of 32%, outpacing the S&P/ASX 200 Index (ASX: XJO)'s return of about 14% this year.

The post GR Engineering (ASX:GNG) share price lifts 12% on record FY21 revenue appeared first on The Motley Fool Australia.

The GR Engineering Services Ltd (ASX: GNG) share price is on the move today. This comes after the engineering company announced an update on its full-year revenue guidance for 2021.

During morning trade, GR Engineering shares are swapping hands for $1.38, up 3.76%. In earlier trade, the company's shares had lifted by almost 7% before retreating to their current level.

Projecting a record year

Investors are driving up GR Engineering shares following the release of upgraded earnings guidance.

In a statement to the ASX, GR Engineering advised revenue and margins have continued to improve in the second half. The constriction of the labour market in Australia has surprisingly not impacted the company. The business has managed to navigate its way through COVID-19, increasing its workforce to meet demand and deliver on projects.

As a result, FY21 revenue for the year ending 30 June, is expected to come in at between $370 million and $390 million. This represents more than an 8% lift from the previous revenue guidance of $340 million to $360 million.

GR Engineering noted it is focused on managing equipment deliveries in a timely manner despite international shipping delays.

Geoff Jones, GR Engineering managing director, touched on the company's performance, saying:

GR Engineering is projecting record FY21 revenue and EBITDA based on the year-to-date results and our current ongoing work. Given our project pipeline and near-term prospective work and continued strong cash generation, GR Engineering remains well placed to deliver returns to its shareholders through FY22 and FY23.

The company is scheduled to release its full-year results for the 2021 financial year on or around 24 August.

GR Engineering share price snapshot

During the past year, GR Engineering shares have moved on an upwards trajectory, slowly climbing to within reach of 2017 levels. The company's share price has delivered gains of almost 100% over the past 12 months and is up by around 13% year to date.

On today's price, GR Engineering commands a market capitalisation of roughly $222 million, with around 160 million shares outstanding.

The post Why the GR Engineering (ASX:GNG) share price is pushing higher today appeared first on The Motley Fool Australia.

The Ecograf Ltd (ASX: EGR) share price is on a wild ride this morning. Initially down more than 6%, the share price then went up 3%. At the time of writing, the Ecograf share price is back down 3% at 97 cents.

The share price movement comes after the graphite producer and supplier reported on the completion of its capital raising.

What did Ecograf report on its capital raising?

In an announcement to the ASX this morning, Ecograf reported it has firm commitments from institutional, sophisticated and professional investors to raise $54.6 million (excluding costs).

Ecograf will issue around 91 million new fully-paid ordinary shares for 60 cents per share. That's a significant discount to the current 97 cents per share. Ecograf said that "a share purchase plan for all retail shareholders was not possible at this time".

The company plans to use the new capital to advance its battery anode material recycling programs as well as for the construction and operational commissioning of the first phase of its battery anode material purification facility in Western Australia.

Ecograf also intends to finalise the debt financing arrangements for its Epanko graphite mine.

On Monday, the company announced that GR Engineering Services Ltd (ASX: GNG) would provide the engineering design for its new battery graphite facility in Western Australia. That facility will use the EcoGraf purification technology to provide quality battery anode material products to lithium-ion battery and anode manufacturers.

According to the company, a key advantage of the EcoGra eco-friendly process is "the elimination of the use of toxic hydrofluoric acid (HF), providing customers with 'HF Free' battery products that support the increased focus on supply chain environmental, social and governance (ESG) requirements".

Ecograf share price snapshot

Though up and down for the day in morning trade, the Ecograf share price has been rocketing in 2021.

Shares really began to surge in mid-January, and year-to-date the Ecograf share price is now up an eye-popping 485%. But comparison the All Ordinaries Index (ASX: XAO) is up just over 2% in 2021.

Over the past 12 months, Ecograf shares have gained 1,144%.

The post Why is the Ecograf (ASX:EGR) share price on a wild ride today? appeared first on The Motley Fool Australia.

GR Engineering Services Ltd (ASX: GNG) shares will be on watch today after the company provided investors with a business update on its guidance for the full 2021 financial year. At market close yesterday, the GR Engineering share price finished the day at $1.18.

It will be interesting to watch how the company's shares perform today as investors digest this morning's update.

What did GR Engineering announce?

The GR Engineering share price will be in focus this morning after the company released a positive update.

According to this morning's release, GR Engineering advised that favourable trading conditions have continued throughout FY21.

As a result, the company upgraded its revenue guidance for the period ending 30 June 2021. GR Engineering now expects its full-year revenue to come in at between $340 million and $360 million, reflecting a sizeable increase on the original guidance.

Originally, GR Engineering had forecast FY21 revenue for the same period to be around $280 million to $300 million.

The company stated that its half-year results will be released on 24 February 2021.

Management commentary

Mr Geoff Jones, managing director of GR Engineering, touched on the company's robust performance, saying:

GR Engineering has been able to build on its strong finish to FY20 and is forecasting record revenue for FY21 with improved EBITDA margins. The pipeline of ongoing and near-term prospective projects remains solid and provides revenue and earnings visibility beyond FY21. The balance sheet has been strengthened and this has been underpinned by strong cash generation in the first half of FY21.

About the GR Engineering share price

Over the past 12 months, the GR Engineering share price has trekked higher, delivering a 28% gain for shareholders.

During March, GR Engineering shares fell to a multi-year low of 60 cents, before zooming on an upwards trajectory.

It's worth noting that the GR Engineering share price is currently a whisker away from its 52-week high of $1.26.

Based on the current share price, the company commands a market capitalisation of roughly $183 million.

The post Why the GR Engineering (ASX:GNG) share price will be on watch today appeared first on The Motley Fool Australia.

The GR Engineering Services Ltd (ASX: GNG) share price has surged higher in morning trade, up 3.51% at $1.18.

This follows the company's announcement of a new Australian government contract for its wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream PS).

What's driving the GR Engineering share price today?

In today's ASX release, GR Engineering reported that Upstream PS has secured a 1-year contract with the Department of Industry, Science, Energy and Resources (DISER).

In the contract, the company will provide operations, maintenance and project services to the Northern Endeavor floating production storage and offloading (FPSO) facility and its associated infrastructure.

Upstream PS has provided maintenance and operations services to the FPSO since February this year. That contract is due to expire on 31 December, in the leadup to the FPSO's disconnection and removal..

The company expects approximately $130 million in revenue from the new contract, based on the budget for core operation and maintenance services and the planned pre-disconnection project works involved.

Commenting on the new contract, GR Engineering managing director Geoff Jones said:

We are pleased to continue working with DISER and the relevant regulatory bodies to safely manage and maintain the FPSO and execute the required pre-disconnect preparation activities to support a safe removal of the FPSO in the future.

Company snapshot

GR Engineering provides process engineering design and construction services to the mining and mineral processing industry.

With projects at Dalgaranga Gold, Mt Morgan, and Nova Nickel, it has divisions in mining processing, and oil and gas. The majority of its revenue is generated from the mining processing segment.

GR Engineering shares first began trading on the ASX in April 2011. The company has a current market cap of $177 million and pays a dividend yield of 5.3%, unfranked.

About the GR Engineering share price

The company was off to a strong start in 2020, with the share price gaining 25% by 24 January. From there, shares got dragged down by the wider COVID-driven selloff, falling 34% by 23 March. Since the March low, the GR Engineering share price has surged 76%, putting its shares up 45% year-to-date.

By comparison, the broader All Ordinaries Index (ASX: XAO) is up 1.5% for the year.

The post The GR Engineering (ASX:GNG) share price has climbed 3% today. Here's why. appeared first on The Motley Fool Australia.

Between now and Friday 9 October, there are a range of opportunities to capture high yield ASX dividends. Some of these companies are small caps, albeit with solid performance, while others are ASX 200 giants. For investors interested in building an income-generating portfolio, these companies may represent some solid additions.

A quick guide to ASX dividends

When building a sustainable portfolio of ASX dividend shares, investors need to focus on three things. First, there is no need to look only at the top 20 or 50 companies. A company has to have a proven, cash-generating business model. Second, you must be able to invest in ASX dividend shares without sacrificing your capital. Third, a company should be able to pay the dividends from direct earnings. 

So let's take a look at my pick of 4 high yield ASX dividend shares to buy right now.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

Southern Cross is an electrical contracting company. I worked on several construction projects for the company more than 20 years ago. This share goes ex-dividend on 7 October, 2020. At today's closing price, the payment will be a yield of 6.12%. In addition, this ASX dividend share has paid a consistent dividend in 8 of the past 10 years. In the past 3 years, the Southern Cross share price has fallen after payment, but has regained ground again. The company already has $330 million of secured project work in FY21, which accounts for 80% of the revenue target.

XRF Scientific Limited (ASX: XRF)

XRF is a small cap company that manufactures equipment and chemicals used in the preparation of samples for analysis. To illustrate the value of this company, in FY20 it increased its net profit after tax (NPAT) by 46%. This ASX dividend share goes ex-dividend on 1 October with a payment that will yield 4.59% based on today's closing price. Based in Perth, the company is keyed into the mining industry and has a diverse range of mining clients. 

GR Engineering Services Ltd (ASX: GNG)

GR Engineering provides engineering design, procurement and construction services to the mining and mineral processing industry and the provision of operations, maintenance, projects and advisory services to the oil and gas sector. It forecasts revenue for FY21 to be in the range of $280 million to $300 million, with improvement in margins.

This ASX dividend share goes ex-dividend on 8 October with a payment that will yield 3.96% based on today's closing price.

Harvey Norman Holdings Limited (ASX: HVN) 

Harvey Norman has had a great year during the pandemic. In fact, NPAT rose by 19.4% compared to FY19 due to the work from home phenomenon, and an increase in online sales. The Harvey Norman ASX dividend payment will yield 3.93% at today's closing price. The ex-dividend date is 9 October.

The post 4 high yield ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

The GR Engineering Services Ltd (ASX: GNG) share price is trading higher this afternoon, up by 7.56% to $0.92 at the time of writing. The share price gain comes on the back of GNR's announcement that its wholly owned subsidiary Upstream Production Solutions has entered into an agreement with an Australian government department.

What does GR Engineering do?

GR Engineering provides process and detailed engineering design, procurement and construction services to the mining and mineral processing industry. It also delivers operations, maintenance, projects and advisory services to the oil and gas sector. GNG has three divisions: design and construction services, consulting services, and asset management services.

GNG Engineering has a current market capitalisation of $132 million, a very high price-to-earnings (P/E) ratio of 199 and currently pays a high dividend yield of 6.1% (unfranked).

In its most recent full-year earnings results, GR Engineering reported FY19 sales revenue of $182.3 million, underlying earnings before interest, tax, depreciation and amortisation of $11.2 million and profit before tax of $8.8 million.

What did GR Engineering announce?

GR Engineering has reported that its wholly owned subsidiary Upstream Production Solutions (Upstream PS) has entered into an agreement with the Australian Government's Department of Industry, Science, Energy and Resources to provide operations and maintenance services to the Northern Endeavour floating production, storage and offtake facility.

On 14 February 2020, the department announced that urgent steps were underway to secure the continued safety and security of the Northern Endeavour FPSO after the liquidation of the Northern Oil and Gas Australia group of companies (NOGA). It also announced the establishment of the Northern Endeavour Temporary Operations Program to provide funding to support the operation and maintenance of the Northern Endeavour.

As part of the program, the department has now engaged Upstream PS to provide operations and maintenance services that will reinstate minimum manning and restore safety critical services to the Northern Endeavour. Upstream PS has safely remobilised personnel to the FPSO and is proceeding under an initial short-term contract to provide services to the department on commercial terms, in a non-production environment.

Upstream PS has been involved in operating and maintaining the Northern Endeavour for over three and a half years.

Commenting on the agreement, GR Engineering's managing director Geoff Jones said:

We are pleased that Upstream PS has been identified as the party best placed to support the Department's immediate safety and security objectives under the Northern Endeavour Temporary Operations Program. Upstream PS' involvement in operating and maintaining the Northern Endeavour for over three and a half years and at all times prior to NOGA's entry into liquidation has facilitated Upstream PS' quick response and safe re-mobilisation to the Facility.

The post Here's why this ASX materials stock shot up 7% today appeared first on The Motley Fool Australia.

The S&P/ASX 200 index is on course to follow the lead of U.S. markets and record a solid gain on Tuesday. In afternoon trade the benchmark index is up 0.25% to 6,704.5 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they have dropped lower:

The GR Engineering Services Ltd (ASX: GNG) share price has returned to trade and dropped 19.5% to 70 cents. This morning the engineering company warned that its financial results could be impacted by Timor Sea Oil & Gas Australia going into voluntary administration. GR Engineering's assessment of the group's exposure is ~$17.4 million. This represents receivables and work in progress of $15.9 million and the finalisation of commitments to vendors and suppliers of $1.5 million.

The LiveHire Ltd (ASX: LVH) share price has sunk almost 9% lower to 26.5 cents. Investors have been heading to the exits despite an announcement on Monday revealing that the talent technology company has entered into four new or extended agreements recently across ANZ and the US. Investors don't appear overly optimistic that this will make a meaningful difference to its performance in FY 2020. Last year LiveHire posted revenue of $2.6 million and a sizeable loss of $13.8 million.

The Oil Search Limited (ASX: OSH) share price is down 1.5% to $7.20 after oil prices tumbled lower overnight due to weak economic data out of China. In other news, this morning the energy producer revealed that Dr Keiran Wulff will replace the retiring Peter Botten as the company's managing director in February. Dr Wulff is currently Oil Search's Executive Vice President, Alaska and President of Oil Search Alaska.

The Resolute Mining Limited (ASX: RSG) share price has fallen 2.5% to $1.38 after the gold price tumbled lower. According to CNBC, overnight the spot gold price dropped 1.8% to US$1,479.10 an ounce after the U.S. dollar strengthened. The precious metal has continued to fall during Asian trade, leading to the S&P/ASX All Ords Gold index falling 1.7% today.

The post Why GR Engineering, LiveHire, Oil Search, & Resolute Mining dropped lower today appeared first on The Motley Fool Australia.

Just ask Webjet Limited (ASX: WEB) and MACA Limited (ASX: MLD) shareholders.

Who is Joel Greenblatt?

Joel Greenblatt is a famous — and hugely successful — US investment manager. His hedge fund, Gotham Capital, is believed to have delivered an average yearly return of 40% over the years 1985 to 2006. That turns $10,000 into over $8 million.

Greenblatt authored the funny, easy-to-read and simple book called The Little Book That Beats the Market.

So what?

In the book, Greenblatt details a simple "Magic Formula" for sharemarket success, which requires investors to buy shares in quality companies when they're cheap.

Sounds simple, right?

Yes, it's simple. But it is not easy.

Why?

Most people are too scared to hold some of the shares that the formula tells us to buy.

Returns in Action

Going on three years ago, my colleague Matt Joass, CFA, wrote this article and provided a list of 30 shares which would have been produced by the "Magic Formula" on the ASX:

In 2014, the mining sector was on its knees and mining services companies were being thrown out. China's slowdown was going to wreak havoc on these companies, or so we thought.

Based purely on share prices (no dividends), the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 10.4% since that time.

Although it is not exactly correct I excluded the companies from Matt's list that were smaller than $100 million in market capitalisation. I also excluded Premiere Eastern Energy (ASX: PEZ) because it had a share price of $0 according to the table.

The result?

Drum roll, please…

Adjusting for takeovers and mergers, the average return of these $100m+ companies in the Magic Formula was almost 51%. In other words, almost five times the return of the market, excluding dividends.

I think you will admit, that's a pretty handy return over three years.

Foolish Takeaway

I'm always sceptical (skeptical?) of quantitative or 'formulaic' investing strategies. However, the Magic Formula is simple, logical and well supported by research. If nothing else it would provide a useful starting point for investment ideas.

As a bonus, the book is easy-to-read and short, so you could get the low-down on the formula for less than $20 and a weekend of reading!

The post Is this the "Magic Formula" to investing in ASX shares? appeared first on The Motley Fool Australia.

Four shares which have acted as a drag on the market today with heavy declines are listed below. Here's why they are ending the week in the red:

The Ardent Leisure Group (ASX: AAD) share price has fallen 5.5% to $2.01 following the release of its full-year guidance. According to the release, preliminary full-year core EBITDA is expected to be in the range of $73 million and $75 million for the 12 months ending 30 June 2017. Much like its interim dividend, Ardent Leisure has decided to cut its final dividend as well.

The Bellamy's Australia Ltd (ASX: BAL) share price has dropped 4% to $7.12 despite there being no news out of the infant formula company. But with its shares up 37% since the start of June, I suspect there may be a spot of profit taking going on today. Although things are looking promising for the company, I would stay clear of it at the current share price.

The GR Engineering Services Ltd (ASX: GNG) share price is down 6.5% to $1.36. This morning the engineering company downgraded its full-year EBITDA guidance to between $16 million and $17 million. This is a sharp drop from last year when the company posted EBITDA of $26.1 million. Management has blamed the downgrade on timing factors and expects payments to fall into FY 2018.

The Orocobre Limited (ASX: ORE) share price has fallen 5% to $3.38. After the market closed yesterday the lithium miner warned that severe weather had impacted its operations in the Puna region of Argentina and Chile. Unfortunately this has led to another downgrade to its full-year production guidance.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

In early afternoon trade the engineering company's shares are down almost 6% to $1.38.

What happened?

This morning GR Engineering Services announced a revision to its expected earnings for the financial year ending 30 June 2017.

According to the release, due to departures from anticipated progress claim timing on recently awarded projects, the company expects FY 2017 revenue to be in the range $215 million to $220 million.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) is expected to be in the range of $16 million and $17 million.

This will be a big drop from FY 2016 which saw the company deliver EBITDA of $26.1 million on revenues of $255.3 million.

Management does expect things to pick up in FY 2018 and has forecast revenue in the range of $300 million and $330 million.

The post GR Engineering Services Ltd share price tumbles on earnings downgrade appeared first on The Motley Fool Australia.

Edward Vesely: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Not just for this month, but for the very long-run, I can't go past recommending Washington H. Soul Pattinson as a listed investment house that invests across a range of industries and businesses.

With the share price down from its previous high of $17.68 reached in July last year, it's now trading at approximately 1.2 times book value and pays a fully-franked dividend yield of 3.4%. This is decent value in my opinion for any investor wanting to hold a piece of this company for many years.

Motley Fool contributor Edward Vesely owns no shares in Washington H. Soul Pattinson and Co. Ltd.

James Mickleboro: Aconex Ltd (ASX: ACX)

I believe this software-as-a-service company has a bright future which makes it a great buy and hold investment. In the last few years, Aconex has attracted the likes of Ikea, ExxonMobil, and Tesla to its popular platform. It's not hard to see why when management explains that the platform can accelerate the pace of product delivery and help build five hospitals for the price of four. Its popularity has led revenue to grow at a rapid rate for a number of years. This is expected to continue in FY 2017 with management forecasting revenue growth of over 45%.

Motley Fool contributor James Mickleboro has no financial interest in Aconex Ltd.

Tom Richardson: Cochlear Ltd (ASX: COH)

Shares in this implantable hearing device manufacturer don't come cheap although it remains one of the best long-term growth stocks on the ASX thanks to its competitive advantages, market-leading products and future proof technologies. Today's price of $122.90 looks a reasonable entry point and I would look to dollar cost average a total investment over a reasonable timeframe of a year or more.

Motley Fool contributor Tom Richardson owns shares in Cochlear Ltd. 

Sean O'Neill: Vocus Communications Limited (ASX: VOC)

Vocus has its issues, including the recent resignation of board members, poor customer service, and underperformance at the recently acquired NextGen. Yet at today's prices the market is effectively assuming that Vocus will achieve nothing, which overlooks the long lifespan of the company's assets as well as its ongoing investment in growth, both here and internationally. With higher demand for data in the future looking likely, and modest debt combined with the defensive utility-like nature of internet demand, I think Vocus shares have been oversold.

Motley Fool contributor Sean O'Neill doesn't own shares in Vocus Communications Limited.

Alan Edmunds: GR Engineering Services Ltd (ASX: GNG)

2016 appears to have marked the bottom of the commodity cycle, with prices rebounding strongly. While I expect commodity prices to level off in 2017, the recent rise should see renewed activity by resource companies. I am of the opinion that well-run mining service companies are set to benefit as large resource companies again expand operations. I have chosen GR Engineering Services because of its high quality management which was able to navigate the recent downturn significantly better than most of its competitors.

Motley Fool contributor Alan Edmunds owns shares in GR Engineering Services Ltd.

Tristan Harrison: WAM Capital Limited (ASX: WAM)

This listed investment company (LIC) has been one of the best performing LICs over the last 12 months, 3 years, 5 years, and 10 years. I think it could outperform again this year because at the end of November it had 35% of assets in cash – this can protect against share market declines and also provides ammo to buy beaten-down stocks.

It has increased its dividend every year since the GFC and has a grossed up dividend yield of 8.6%, I think it could be the best dividend stock this year.

Motley Fool contributor Tristan Harrison owns shares in WAM Capital Limited.

The post Top stock picks for January appeared first on The Motley Fool Australia.

Galaxy Resources Limited (ASX: GXY) has seen its share price rocket 1,200% in the past 12 months, Orocobre Limited (ASX: ORE) is up a measly 158% and Pilbara Minerals Ltd (ASX: PLS) an easy 378%.

But their best gains might be behind them, and investors might want to look at another sector that surprisingly is hotting up.

Having being pummelled into the earth, the mining services sector may be showing signs of a recovery, and companies in that sector reporting reasonably positive outlooks. Some fund managers have already cottoned on to the potential, but most have yet to rediscover it.

Yesterday I wrote about NRW Holdings Limited (ASX: NWH), which saw its share price explode 45% higher to 58 cents and closed even higher at 61.5 cents – after reporting a much-improved result. NRW's commentary also said there were 'signs of stability in resources and infrastructure, with increasing tender opportunities'. Even at current prices, the shares look cheap – trading on a P/E of ~7.7x.

GR Engineering Services Ltd (ASX: GNG) saw its share price jump 15% to $1.63 on August 9, after the resources contractor upgraded its earnings forecasts, as we reported here.

Ausdrill Limited's (ASX: ASL) share price is up 380% so far this year, and 28% in the past month, after selling a number of non-core businesses and being awarded a contract for additional works on Perseus Mining Limited's (ASX: PRU) Edikan Gold mine in Ghana. The contract is worth US$120 million in revenues over 42 months.

Austin Engineering Ltd (ASX: ANG) has seen its share price rise 75% in the past month, despite no price-sensitive announcements in that time.

Maca Ltd (ASX: MLD) has seen its share price rise 72% in the past three months, and Paradice Investment Management increased its holding to 7.192% in July.

Heavy engineering group Bradken Limited (ASX: BKN) also recently announced that it expected an improved second half of the 2016 financial year and reconfirm its previous guidance.

The signs appear to be that the worst is behind the sector and the booming gold price, an iron ore price above US$60 a tonne and other commodity prices rising may be adding to the tailwinds.

Foolish takeaway

The average share price gain across 24 of the largest construction and engineering companies on the ASX is 26% in the past month. More gains could be ahead, with many companies trading on low P/Es and even below book value.

The post Forget lithium, this is the next hot sector appeared first on The Motley Fool Australia.

GR Engineering expects revenues in the second half of the 2016 financial year (FY16) to be similar to the first half of around $127 million, however, the company says it now expected earnings before interest, tax, depreciation and amortisation (EBITDA) of around $26 million and profit before tax (PBT) of around $25 million for FY16.

Should the company meet that guidance, it will represent a major increase over last year's financial results. 17% jump in revenues, a 28% rise in EBITDA and a 45% rise in PBT.

That's an unusual result for a company heavily involved in the mining services sector – with many others seeing falling revenues and margins over the past few years and likely to continue into next year.

Monadelphous Group Limited (ASX: MND) is expected to post lower earnings in FY16, after reporting a 38% fall in first-half net profit on the back of a 30% fall in revenues. The company is widely regarded as one of the best in the mining services sector, but still expects lower earnings this year.

Mining capital expenditure is still falling and has yet to hit bottom – although that is expected in 2017. That could see other mining services companies report disappointing results this financial year, but investors might want to pay close attention to their outlook statements. A number have already started moving, with Ausdrill Limited (ASX: ASL) up 329% year-to-date and NRW Holdings Limited (ASX: NWH) a whopping 472%.

At the current price of $1.63, GR Engineering is trading on a P/E ratio of just over 14x, but is paying a dividend yield of around 6.9% fully franked. That may be a reasonable price to pay – although the share price has doubled since the start of this year.

The post GR Engineering Services Ltd share price soars on earnings update appeared first on The Motley Fool Australia.

As the construction and engineering sector table below shows, the average decline in share price is 58%, and only 3 companies out of 31 have managed to increase their share prices.

By comparison, the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) is up 14.5% since early January 2013.

Data provided by: S&P Global Market Intelligence

But some fund managers have been playing that space for a while now with some success, while others are dipping their toes in. So, could now be the time to re-enter the mining services sector?

WAM Capital Limited (ASX: WAM) chairman and well-known fund manager Geoff Wilson thinks so, recently naming Southern Cross Electrical and Maca Ltd as two companies his funds have invested in. Ben Griffiths from Eley Griffiths also agrees that the worst could be over.

Forager Funds is another fund manager diving into the sector and recently held shares in MacMahon Holdings, GR Engineering and Service Stream. The 3 companies are up 15%, 18% and a whopping 76% since the start of this year. Some of these companies aren't really mining services companies – but provide construction and engineering services to other sectors such as telecommunications. Service Stream is one that is profiting from the roll-out of the National Broadband Network.

If the commodities cycle has bottomed as many commentators think, then it does suggest that the most likely course from here is upwards. If resources companies start opening their purses and spending that will be the key factor in the revival of the mining services sector.

Foolish takeaway

Many companies in the sector look very cheap. Monadelphous is trading on a trailing P/E ratio of 8.7x at the current price of $7.77, and GR Engineering on a P/E of just over 9x, and paying a fully franked dividend yield of more than 10%.

Now may be a perfect time to take an in-depth dive into the sector with the potential to uncover some gems.

The post Why this fund manager is ploughing back into mining services appeared first on The Motley Fool Australia.

In other words, if a company's P/E ratio drops and ends up under 10x, bargain hunters are usually waiting, which can see the share price rise, removing the bargain.

One reason why company's share prices can consistently remain under 10x is if the market considers the outlook (and therefore earnings) is negative.

Take two companies in the mining services sector, Monadelphous Group Limited (ASX: MND) and GR Engineering Services Ltd (ASX: GNG). Both companies currently sport P/E ratios under 10, 9.0x for Monadelphous, 9.8x for GR Engineering, and analyst consensus earnings forecasts suggest a P/E ratio of 10.2x for Monadelphous and 8.9x for GR Engineering.

That's despite both companies generating solid returns on equity, (22.6% for Monadelphous, 21.2% for GR Engineering) and solid net cash balances. Monadelphous reported $182.7 million of net cash at the end of December 2015, only slight down (0.9%) from 12 months prior to that. GR Engineering had $42.6 million in net cash – down from $50.4 million at the end of December 2014.

The concern investors appear to have about both companies is that earnings will fall. In the last half year, Monadelphous saw revenues sink 30% and net profit down 38%. GR Engineering, on the other hand, reported a 20% increase in revenues and a 34% increase in net profit for the half year. The company even raised its interim dividend by 11% to 5 cents, fully franked. No surprise then that the company's share price hasn't been as hard hit as Monadelphous'.

Where to next?

The outlook for both companies was different too. GR Engineering expects the second half to be 'consistent' with the first half, while Monadelphous says market conditions 'remain challenging', and is forecasting full-year revenue to be around 25% lower than in 2015. Margins are also under pressure, with a surplus of service providers and reduced work available.

Resource sector capital expenditure is not expected to hit bottom until late in 2017, suggesting Monadelphous, at least, faces a tough short-term period ahead. GR Engineering appears to be making a better fist of things, although it too has seen its margins compressed. The company's gross margin dropped from 18% to just 12% in the last half.

That suggests to me that despite their cheap prices, earnings are at risk of falling, perhaps less so at GR Engineering though, and investors could see cheaper prices ahead. In the meantime, Monadelphous's yield of 9.6% and GR Engineering's 10.2% yield might make up for some of the pain.

Almond pains

Another company that has been beaten up and spat out by the market is Select Harvests Limited (ASX: SHV). The almond producer's shares currently trade on a trailing P/E ratio of 5.6x, with a forecast of 8.5x. The share price has dropped nearly 60% from a high of $13.64 in August last year to trade around $4.82 currently. That's despite delivering $80 million in operating cash flow in the six months to December 2015 – for a company with a market cap of roughly $350 million. A rough calculation suggests shares are trading on just over 2x annualised operating cash flow – which is cheap by any measure. Select also boasts a whopping dividend yield of 11.5%, although it's unfranked.

But Select Harvests says the almond market is uncertain, with prices falling from record highs of US$4.70 a pound in August 2015 to US$2.60 in January this year – a three-year low. The Financial Times reports that buyers have disappeared and trading has ground to a halt – – one reason why Select is struggling to sell product. The company says it has sold just 16% of its 2016 crop compared to 30% last year.

Like the two mining services companies, Select Harvests' shares appear to have a cheap price for a very good reason. Earnings this year are likely to be materially lower than last year, and analyst forecasts appear far too optimistic.

Foolish takeaway

If you are comfortable seeing your shares sink and prepared to take a long-term approach, then now might a good time to dip your toe in, but investors will more than likely get a better opportunity to buy shares at cheaper pricesdown the track.

The post Can these 3 cheap, beaten-up shares turn things around? appeared first on The Motley Fool Australia.

Over 19 years that turns a $10,000 jet ski in to an $11,641,046 private yacht.

Today, Greenblatt has pivoted 180 degrees from his origins in special situations. He is now managing over $5 billion with a quantitative value approach that is based on an expansion of his famous Magic Formula.

The premise of the Magic Formula is simple: buy good companies at a cheap price. Quality is measured by return on capital employed, while cheapness is measured by the earnings yield (EBIT/Enterprise Value).

Applying this test to the Australian market, and filtering out financials we arrive at the following list.

(Data Source: Capital IQ)

This list will always be full of names that make investors squeamish. There is, after all, a reason that these companies are cheap.

But that is also why Greenblatt advocates a mechanical adoption of the Magic Formula strategy. When we add our own human biases to the process we are more likely to under-perform, not less.

There are two companies within this list that are recent additions to my own portfolio: Vocation (ASX:VET) and Reverse Corp (ASX:REF).

Neither are pretty businesses. Vocation faces a class action lawsuit regarding its disclosure practices, and Reverse Corp's reverse calling 1-800 number faces long term structural decline. The bear case is easy to make for each, but that is the nature of deep value investments.

What matters is the price that we pay for a given level of quality. Reverse Corp's main business may be in structural decline, but with $6 million in cash and expected half year EBITDA of $1.35 million, it doesn't take much to justify the current $12.5 million valuation.

Following a mechanical quantitative-value approach empowers us to avoid the gag-reflex that these type of companies typically engender.

I back tested this approach over the past 12 months. The results were encouraging. The December 2013 portfolio of 30 companies is up 8.01% for the year, compared with the All Ordinaries which is down -1.07%.

However it must be noted that this back test is subject to survivorship bias. I have taken a list of the 2,144 companies that currently make up the ASX and then selected based on what their rankings would have been a year ago. This excludes any companies that would have been selected a year ago but which have since stopped trading under that name (bankruptcy, reverse listing etc).

I will be revisiting this list throughout 2015 to see how it is doing, and  re-balancing the portfolio. I am also looking at a couple of ways to tweak the algorithm and underlying data to better target what Greenblatt is reaching for.

It is easy for us to dismiss the Magic Formula as too simple to be taken seriously. But with one of the world's all time greatest investors now managing over $5 billion using a modified version of this strategy, it's about time the Magic Formula gets the attention it deserves.

The post 30 Aussie Magic Formula Picks for 2015 appeared first on The Motley Fool Australia.

Many investors are scared to enter the sector, worried about another debacle like Forge Group – but trawling through the bottom of the barrel can throw up a number of opportunities. And let's face it – if you want to beat the market, you can't follow the herd and expect to outperform.

And more than a few of the companies labelled with the mining services tag have very little to a small amount of exposure to the resources industry.

Here are four cheap construction and engineering ideas for you…

Brierty Limited (ASX: BYL)

My top stock pick for September, Brierty is currently trading on a P/E ratio of 7x and paying a 4.8% fully franked dividend. The company also recently declared a fully franked special dividend of 8 cents per share to release surplus franking credits – although a black mark was raising $8.25 million in a placement to pay for it. Brierty also has more than 2 years' worth of work in hand, with $27 million in cash and little debt.

WDS Limited (ASX: WDS)

WDS pays dividends on a quarterly basis, unlike most ASX-listed companies, and paid a fully franked dividend yield of 9.6% in 2014. Grossed up, that's a return of 13.7%! Shares look cheap, currently trading on a P/E ratio of 8x, and the company has net cash of $18 million at the end of June. The company has plenty of work in hand across both its mining and energy divisions and says it's well positioned for profitable growth.

Watpac Limited (ASX: WTP)

Currently trading on a P/E ratio of just 10x, Watpac is also paying a 50% franked dividend yield of 6.1%. At the end of June 2014, the company had $1.84 billion in work in hand, and cash of $190 million (which incidentally is less than its market cap of $179m), although it does have debt of $75 million – most of which is finance leases for the equipment it utilises. That cash balance could rise too, with $41 million worth of property earmarked for sale over the next three years.

GR Engineering Limited (ASX: GNG)

Trading on a P/E ratio of 10.2x and paying a fully franked dividend yield of 7.4%, GR Engineering posted an 89% rise in net profit for the 2014 year, despite flat revenues. The company has net cash of $36.9 million and is forecasting growing revenues this financial year, with recent acquisitions to add further growth in the years ahead.

The post Digging for treasure: Are these diamonds in the mining services rough? appeared first on The Motley Fool Australia.