I was talking to a person who lives in WA and he said that DGX reputation is not good- i said well if thats the case why are they winning all this work- he couldnt answer me so i concluded that he may have been burnt like a lot of people however it was their involvement in the Middle east in 2008 and GFC impact that sucked up all the money they had made previously- the market is still cautious and need results due to their past -
my take is that they are on the recovery and last financial proves that - hey also mentioned that the competitive nature of construction caused losses so winning these projects are great -however making money out of them is another. More importantly is the fact that DGX saved themselves from going under and did a sucessfull capital raising so all in all its still a risk until they grow their profit from these current and future projects- if they do this successfully then the market may respond however right now its still considered a risk and the ones that got burnt wont be back in a hurry leaving only new investors to take the plunge
In terms of shareprice direction i think it will probably retrace to around 3.8c and consolidate for a while - not that i have a crystal ball but there is still a waiting period
