Watpac is a new discovery for me. I prev thought it was a paint...

Watpac is a new discovery for me. I prev thought it was a paint ompany...lol. Today's announcement appeared on another company i follow. I read through all the recent WTP releases and was impressed by their strong and diverse order book. I esp like the contracts with Iluka and other miners. They are simple style work eg. removing overburden and not complex construction. This reduces risk of cost blow-outs.

I bought-in this morning and paid top dollar of 1.415. At this price it's not a bargain.... but i like management's conservative style of reporting, ability to quickly reduce debt by selling surplus landholdings and willingness to pay a reasonable ffr div. The real leap in earnings is in FY12. I reckon we could see net profit reach 40million in fy12. With a 260m mkt cap that's a PE of 6. With some 2.5billion of WIH its a good stk to have over 2 yrs. 3 divs within 14 months def adds to the appeal.

I bought half my quota and will double-up if SP goes below 1.30. Company been listed for 26 yrs. That expr def counts for something. Be interested to read what ormond, simon1, dejavoo and others think.
cheers
MikeM.