3 reasons why I see LEI is dropping. 1) Leighton owns quite a few properties and there are analysts expecting a downgrade on the value of these as has been the case with the general property sector. 2) Last month LEI's contract in Dubai had a 'riskier' agreement, where the cost is shared so profit margin is not as predictable. Analyst was wondering if this was a start of LEI going for lower grade/higher risk contracts. 3) Sustainability of the middle east's and china's expenditure; the exports value of these places have dropped significanty; oil price & goods. I read an article last week that there was a 30% chance China actually going backwards next year! LEI may have a huge order book at the moment but then there was Trump tower?
All said, I am a fan of LEI, and I believe most of these factors have been discounted in the price. I am just waiting to see if all of you and the market agrees it has bottomed.
LEI Price at posting:
$22.73 Sentiment: LT Buy Disclosure: Held
