Hello Oz. Only 25% out...not such a good call after all.
Basically I have been here long enough to get attached even though attachment is a no no....(except it means I do watch the price!)
I also agree with Nightmarez this is a different kettle of fish to RCR although I am concerned about profit margins....
Watpac lost close to $50 million on its mining arm and is selling it now as a result of losing “two contracts”:
https://www.theaustralian.com.au/bu...s/news-story/bbf25c25ba479a32fae36d13bbe98235
“Watpac turned in a pre-tax profit of $20.6 million on the back of a strong result from its construction business, but its civil and mining arm fell to a pre-tax loss of $49.6m.”
....I figure one of those was Mt Magnet which Maca took in June 2017:
https://thewest.com.au/business/mining/maca-preferred-for-100m-ramelius-mine-ng-b88501265z
What price did they go in at to win that work?
Same with Gruyere... I know (well heard it on the grape vine ) NRW was on the shortlist to win that contract. NRW was keen ..it certainly needed the work back then but management there obviously wasn’t prepared to potentially shoot itself in the foot.
Did MACA?
It’s lower end estmate for profit this half is less than 3%.
The consequences for companies that win work ‘at any cost’ has been widely reported in recent times .
In civil infrastructure - NorthLink 2 , RCR, Lendlease and more ...
In mining, Downer wants out of it’s mining division, so does Watpac, BGC is for sale, maybe more.
As Nightmarez said the fewer left standing the better it is for those ones.
But as people have noted MACA has already taken two bad hits in around a year .
It doesn’t want a third.
Nightmarez also said the company is conservatively managed . I believe that .
Otherwise it would not be the bastion of funds that it is.
But Perpetual is clearly bleeding after RCR and anxious about the sector.....selling here recently and increasing its stake over at Bega.
And I am bleeding after RCR too.
Anyway still here with a current working strategy to cross fingers that Kidman does a sprint with a view to lowering my average again...
Earlier today I was expecting the price to reach Saragian’s 99c level today but now I am not so certain.
It seems yesterday there was some mighty liquidations going on across the sector 4% down over at NWH currently and MND, WOR, and SVW also gone backwards ..
All very interesting
