Hello Parma and I have been doing a bit of reading .
If I rightly comprehend* a thing I read online today, it confirms what many here (and the brokers) already anticipate - ‘the party’ is just warming up.
So my sentiment is back to ‘BUY’ too.
(No, I do not know with who, where, what or how much it is worth ...and I won’t post the link which only held a hint anyway - NOT from a haruspicy site - and I do not recommend anyone buys more shares on the strength of hints of a hint in an undisclosed link by someone whose dreams and maths are wayward and contrary because the American market might crash again anyway )
Regardless of all that, some weekend entertainment :
NRW -for anyone who hasn’t worked it out for themselves - WILL get more contracts and deserves to be revalued even without any new contracts .
As a company it is ‘the bees knees’.
View attachment 1427769
“
One of the iron ore sector's most experienced mining contractors....” says James Thomon, The Australian Financial Review's Companies & Markets Editor.
https://www.copyright link/business...osts-surge-as-big-three-build-20190104-h19qs4
“
One of Australia’s leading mining services and construction suppliers”.... Zach Relph The West Australian
https://thewest.com.au/business/min...-work-in-glistening-gold-sector-ng-b88921613z
Here is our CEO, Jules Pemberton speaking at one of Australia’s most important annual mining sector events, the Diggers and Dealers, last August.
View attachment 1427773
“Jules Pemberton’s speech marked just the second time in the forum’s 27-year history that a mining services company has presented to delegates. Picture: Simon Santi”
The significance of this should not be underestimated ; The
first presentation spot offered to a mining services company (also last year) was to ac Ausdrill, founded by Western Australian icon, Ron Sayers, in 1987 on the occasion of his retirement . (Ron was also awarded the conference’s highest honour - the G. J. Stokes Memorial Award.)
https://thewest.com.au/business/min...lects-g-j-stokes-memorial-award-ng-b88922508z
Nor should the discrimination of the ‘blue blood’ tier one companies NRW services including BHP, RIO, FMG and OZM.
QUESTION TIME :
Q: “If NRW Holdings is so good why is the price so low?”
Sabine : “Here’s a refresher of recent comment by posters who understand numbers better than me. Yes it
does seem low.
@Danzar : “I did some rough numbers after guidance, but they were rough. PE is 16x vs peers that are running at 18x-22x. If you assume 1H19 guidance on a trailing basis, it's notionally trading 8x, very undervalued to me.”
@Pioupiou: “A (broker) target SP is mooted as $2.25, and the contract wins at South Flank, Eliwana and Koodaideri are regarded as harbingers of more to come from those projects......
...On the $2,25 mentioned, my crude guesstimate posted on 21/01/19 derived a forecast EPS of $1.1 billion x 7.5% divided by 370.6 shares = 22.3 cents, which at a PER of 10 suggested $2.23. The calculation is so crude that I stuck to my long-held round number of $2.30.”
Q: “Yes, seems like it is well priced . But if it is such good value why has the price actually been
outperforming other companies in its sector?
Does not that suggest NWH might be
over valued ?”
View attachment 1427801
https://markets.theaustralian.com.au/shares/NWH/nrw-holdings-limited
Sabine : “It is good to see someone else is bad at numbers. Look at the middle image!
...Not the bit where it says the price went up
3,288.89% in three years....
I mean the way the ranking is ordered on that chart .”
Q: “YES! - how can NWH still be undervalued when it has appreciated
THREE THOUSAND, TWO HUNDRED AND EIGHTY EIGHT POINT EIGHTY NINE PER CENT in the last three years?
-Look at the six month and one month pictures - it also out performed it’s peers there according to the Australian!”
Sabine: “Isn’t 88 a lucky Chinese number? I have to work out the numerology of that when I get back from showing my secret link to my neighbours.
-I don’t know why it is still ridiculously good value and go away! I was actually just having a quiet secret conversation with Parma and you sidetracked me and I don’t even know you!
And I don’t think you should buy shares here without doing your own research! “
(20min delay)
