Ann: Market Update, page-4

I think they'll hit it again. They moved this down yesterday with parcels of 30,000 & 28,000 just sitting a cent or two above the bid and because of the lack of buyers, people were forced to sell into an evaporating list of buyers. This kind of stock favours the shorters and ASX stupid 4 same question speeding ticket never provides any insight or reason for people not to sell or short. Fundamentally I'm not against shorting, all shorters do is ask questions. the problem is, management and the ASX never get out timely answers and guess who knows this.

Just my thoughts, 1st QTR up 10% pcp however I doubt much of that is organic growth probably acquisitional growth. OMSA is a minor acquisition and is apparently EPS accretive. The other acquisitions I believe have been in the engineering and marine services area which is now probably not the best place to be in. Did the pay too much ? Gearing ( via acquisitions ) up to 26% which isn't too high but a lot higher than beforehand. No guidance given but they only update market recently. Revenue and profit have stagnated over the past few years. Revenue from Engineering and Marine ( E & M ) is roughly 1/3 of total income. E & M profit margin is above 9% with Workforce and Tec professionals contributing 4% and 4.4% margins. So the area of the business which has the most questions about it is contributed a 1/3 of the income and a massive 50% of the profit. This is the way I read it. please correct me if I'm wrong ? Have I missed anything ?

So hypothetically if I reduce the margin on E & M down from 9 to 4.5% then I wipe out halve of their profit and dividend payment falls accordingly. If this question doesn't get answered soon then the share price is fair and perhaps a little bit vulnerable.