news?, page-39

This bit is the biggest concern...

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"Whilst the year-end accounts are currently being finalised, Mr Fenn confirmed that excluding the $260 million (pre-tax) Waratah train provision and asset impairment announced on 1 June, he expects the Downer 2010 full-year Net Profit After Tax (NPAT) to be approximately $194 million and is in line with market consensus. Including the impact of the Waratah train provision and asset impairment, the NPAT result is expected to be approximately $3 million.

Mr Fenn said he would discuss the company in more detail when Downer announced its annual results on 19 August 2010."
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Sounds to me like they are going to pay all the profit to Reliance Rail (including the dividends). Then do a cap raising to beef up the cash position?

Geoff Knox was the only one with any guts. These guys will run Downer like the public service again.

I'm out - did fantastic from the bounce. May come back in after August 19 when Fenn talks. But they may do a cap raising before then? If so, I'll buy back in on that day. I still expect a run up for the FMG project (after the election).