H1 Result out on Monday, page-6

Hi PF
Fancy running into you on this site. I have my own thoughts on this which are the SP will be 70c within a week or two (66.5c as i writeZ) and optimticaly will drift higher to circa 75c by June 30. My reasons for that are the terrific sales orders they have coming through in H2 which will be in the range of 1700 to 1900 for the year which was the range that the analyst predicted last year. At that time the analyst put a target SP of 79c. Looking at history and the controlling holding by the chairman, I predict a huge H2, a monster profit and csahflow which results in a FF final dividend of 3c in August 15.
Spoke to a friend recently who undersatnds this sector pretty well and he agrees with me that the next 12 months look fantastic. Probably the next 18 months is a bankable proposition.

What could possibly go wrong??

Well there are rumours that AVJ may bid for some or all of Devine (DVN). Apparently Leightons (LEI) own the controlling stake in DVN. LEI are probably under instructions from the Spaniards to get out of non core investments like DVN. Given LEI's size they might be tempted take a haircut on their shares and off load their stake in DVN at a knock down price to AVJ. That could help a bit if it were to happen (I should add this is sheer speculation on my part) but there will still be minority shareholders on the share register and a complusory acquisition of them may not eventuate. If AVJ cant delist the DVN company and they remain a listed entity, the potential synergies may never be realised.

Cheers W2