Ann: Downer awarded $100 million mining contract, page-6

I have held DOW for a long time, but I do not pay much attention to it, because my holding is small, and I focus on stocks wherein I have invested more funds.  However, every time that I look at DOW with a view to culling my portfolio, I always find reason to like it, and hold.

On Adani, when the Adani contract was announced, I took it as a negative, because of my perceived danger of the sort of litigation that the likes of NWH is having with Samsung, and MND is having with WICET. Executing contracts with escape provisos with DOW and other contractors may have been a theatrical ploy by Adani to give an appearance of reality to the proposed Carmichael coal mine project. The words in the next paragraph about high leverage and high risk appetite suggest to me that Adani follows a heads-I-win-and-tails you-lose business philosophy – the sort of entity with which I would enter into contract with great caution.

According to Wikipedia, “The Adani Group's business strategy has revolved heavily around excessive leverage and political patronage. As of 2015, they are one of India's most indebted business groups.” Wikipedia also has the quote, "In terms of the risk taking appetite and risk absorption capacity there are very few who can match Gautam Adani. There are many who take large risks, but very few have the ability to face their adversity with courage and conviction".

Points raised in:

• https://envirojustice.org.au/sites/default/files/files/envirojustice_adani_environmental_report.pdf

• https://www.getup.org.au/campaigns/great-barrier-reef--3/adani/dont-trust-this-company-with-our-great-barrier-reef
• http://www.smh.com.au/business/unce...-concerns-over-indian-company-20150205-137mbi

come from a sources that are either hostile to mining, or simply looking for a sensational story, but they nevertheless raise interesting questions about dealing with Adani.