Is Austal Underpriced?, page-4

Hi Ed,

To be totally honest, I don't fully understand the relationship Austal may have with the sub contract (outside of the boats you noted). All I can see is you have two states which have a growing unemployment problem and you have Austal with shipyards in both (with the infrastructure mostly ready).

My simple thinking is they have marine building experience on an industrial scale which must some how be able to be transferable to the sub support (direct or indirect). If Austal offer to invest, logic says the government will support it (as Austal did in the US).

A point I forgot to mention in the first message, I think with China escalating the South Sea tension, there is likely going to be more demand for vessels (even if its only to flex muscle). All that printing of cash may as well go to boats, right?

Lets see what happens, Ill keep buying if it heads below 1.15 - purely on yield its better than the deposits.

1Dm