I bought 2143 WOR shares on 15th Dec @ $4.19 and had a chance to...

I bought 2143 WOR shares on 15th Dec @ $4.19 and had a chance to sell them for a decent ~15% profit but I chose not to sell.

I know someone who knows someone who used to work in WOR corporate office. WOR is a great company and has a good operating model. The guy (previous CEO who still owns over 10% of the company) who started the company with this mates after a discussion in the pub after a footy game left the company couple of years ago and retired and came back as Chairman. The CFO at that time was made the CEO. A guy who headed the operations left the company and joined a US company as CEO.

The management became complacent because the company survived during the GFC without much trouble. Too much overheads and the inability to adapt and change during the past 2-3 years has led to their downfall. A major part of their revenues and profitability are dependent on the investment in the Hydrocarbons sector. The operating margin has been shrinking during the last 5-6 years due to increasing spend on overhead. Most of their work is done under the cost plus margin model. It is a good business model and will come around as it is only a matter of time. Recovery in price of oil will lead to recovery of this company.

At current price levels it is a potential takeover target.