Thanks pb for the heads up on the McMahon notice ....Commsec has decided to ‘upgrade’ me which means I now get to wait in 20 minute queues to speak to a phone operator, get fines instead of phone texts reminding me to put money over to pay for shares and also apparently receive prestigious invisible ink flags of official company news........ ( and a free trial of something called Iris which I think is to do with ikebana not Japanese candlesticks and which I cannot access from my iPad )
You are saying MAH chasing East Coast business via acquisition is a reminder sooner or later a significant contract will come to us via one of our new East Coast arms....and the likelihood of this/these potential contract(s) eventuating would have been one of the considerations Wellington um ..considered.
Beyond that you postulate a ‘copy cat’ acquisition ?
But there are so many differences :
NRW bought Golding for $85 million. Golding at that stage had $275 million of work scheduled for this year and another $225 million for after
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
TMM gives $60 million revenue to McMahon who says it will not impact their earnings this year (vendors keeping?) so I guess the acquisition is more similar to our buy of Hughes East Coast drilling?
(NRW paid $11 million for that in December 2016. That side of Hughes had annual revenues of $40 million and was expected to be earnings accretive.)
Anyway the differences between the two sales make me happy I have more shares in NRW than I do in MAH.
And I am sure Wellington feels the same regardless of incipient contracts
Firstly it seems we ‘picked the eyes’ out of the Eastern States market in terms of value (maybe the liver too?)
Secondly there is variance in clear communication between MAH and NRW which makes me prefer NWH
Compare the two notices : (Hughes vs TMM)
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
vs
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
If everything was equal at $60 m pa revenue TMM’s value is $16.5million but I wonder how much MAH has paid upfront?
It says it will rapidly grow TMM but also that it’s only going to pay the vendors (now employees of MAH? depending on how much they grow it
Seems to me they may have bought themselves 80 new machines and 250 more employees for an initial ‘song’ and have the vendors over a bit of a barrel. (
http://tmmgroup.com.au/about/)
(20min delay)
