Yesterday's ann that DOW had failed in the bid to build...

Yesterday's ann that DOW had failed in the bid to build Canberaa's light rail network has hammered the SP. Firm released an update saying the tender cost of 13m has been a write-off. CEO also adjusted the estimated FY16 NPAT target to 180m.

Buggered if i can find an Appendix 3b with latest # of shares on issue. So it won't be exact but FY16 eps should be around 40.8c. I've just doubled-up at $3.11av and at that price it has DOW on a PE of just 7.62. Not bad for a firm that has shown its estimates well in advance.

I've adjusted my FY divs down to 22c ffr. That produces a gr yield of 10.1%. i.e. above the exceptional 10% level. On IFL thread i noted how i feel in FY16 high/very high divs will influence the SP more than in past yrs due to current deflationary environment. Hence, i increased my holding by 55% this morning. DOW at these levels is a med risk/high return play by my reckoning. HY not far away. dyor.