The smart money is moving in-a big line of shares went through this morning with 1.75M shares crossed at 80c. The stock is cheap at 3.1x EBITDA and 9.5x PER for what is a secular growth story in CSG construction and underground coal mining. Take a look at the significant amount of tenders outstanding- $620M, which is due to be awarded within the next 6-9 mths. The vast majority of tenders for the E&I division ($360M) are with clients that WDS is already working with, so expect good take-up here. Brokers positive on the stock (Goldman Sachs 95c price target). We should hit $1 within the next several months, perhaps $2 within a year.
WDS Price at posting:
81.0¢ Sentiment: ST Buy Disclosure: Held
