The market has ignored Watpac in the last month as the...

The market has ignored Watpac in the last month as the construction and mining services sectors have recovered.

Moelis upgraded their outlook for WTP in the past month - if they are accurate then currently trading on a FY13 P/E of 6.2 and FY14 P/E of 5.6. New management have reduced internal costs (staff) and are selling property they can’t do anything with in the next couple of years to reduce debt - sounds like they are doing the right things. They had a healthy project backlog at the end of FY12 and have won their fair share of new projects since.

If there is no bad news in the half year report, I expect the SP to be up 20% … and up 30-40% if the report shows margins are turning around. IMO, very little downside and good upside, at least for the current year.