ASB got a write up in an article by Tony Featherstone on 'Stocks...

ASB got a write up in an article by Tony Featherstone on 'Stocks to Watch'

3. Austal

The ship builder has had a tough start to 2016. It was smashed late last year after announcing schedule and margin pressure on the Littoral Combat Ships (LCS), of which Austal (ASB) is the prime contractor.
Austal plunged from a 52-week high of $2.56 to 98 cents and has since recovered to $1.51. The turnaround should continue, but will take time.
Austal continues to win service work, most recently a US$13.9 million LCS servicing contract. The ability to build a large order book of LCS servicing work – it now has more than US$200 million worth – is one of Austal’s attractions. It can develop a growing, annuity-style income stream for servicing work that underpins medium-term earnings growth.

Like other reasonable turnaround plays, Austal has a strong balance sheet and significant opportunities in Australia and the United States. It bounced back from the disappointing profit warning – and the market’s overreaction to the news – with two service-contract wins this year.  
My long-term thesis for Austal remains intact: it has scope to develop extra maintenance work from the US Navy and, in time, add a second navy as a client. Its relationship with the US Navy is a significant asset and a reason why Austal can recover.