IMHO the only thing driving this SP is broad positive sentiment towards mining services. Seems to me to be a crowded and indiscriminate trade. DCG's performance over the last few years certainly doesn't justify an sp of anything close to current levels. They have a demonstrated history of overpromising, underdelivering, and burning through cash. eg this year they didn't even meet their further revised revenue guidance. And even after selling their headquarters for $27m (and leasing it back for another $2m or so in negative cashflow per annum), at EOFY they were down to just $16m in cash. And, most of their projects either lose money or make extremely slim margins. AND, the claimed underlying NTA is nonsense, because it's predicated on a valuation of Homeground that's just laughable.
As you can see, I don't buy the Decmil story at all!
DCG Price at posting:
$1.21 Sentiment: Sell Disclosure: Not Held
