No one is arguing that Oscar .
What we are seeing is - as per Lendlease comment “razor sharp margins “ that leave no room for anything at all to go wrong.
What we are also seeing is evidence - plenty of it - that companies large and small in the civil infrastructure sector are going to the wall or in bad trouble :
RCR,
Lendlease,
Worley Parsons
Downer
Soanish Giant Acciona suing for $1.1 billion claiming it was misled -costs blow out on Sydney Light Rail Project
https://www.abc.net.au/news/2018-04...ctor-says-it-was-misled-by-government/9652652
York Civil - gone
Omega Construction - gone
Maca - looking for at least 2.33% return on $300m in next six months ...but at least it’s hoping for profit.
Ostwald Brothers - gone
York Civil was a highly reputed 30 year old South Australian business with well respected management .
RCR head flagged the company was for sale last year after dumping his shares near market highs, screwed us to the wall winning unviable solar projects and jumped ship when it all came unstuck, collecting his million dollar golden handshake and disappearing into the sunset.
One of the other executives was accused of being high up in the water authority when she handed a water authority contract to RCR where she was a director ...she’s quietly trickled down the plug hole.
CFO actually wanted a PAY RISE at the AGM ! Quit almost immediately after leaving someone else to hold the baby he and his mates have been sucking the marrow from.
They have reported clients they thought were secure have lost confudence.....
I am not a downramper, or a shorter or an ex holder .
I am a long term holder who was foolish enough to buy into the cap raise as well.
The bright side is the ex CFO of Theiss stuck close to $50 grand in and it will be heinous if we go to the wall.
But realistically ..considering those razor sharp margins .... how are we going to pay the interest on bridging finance?
Maybe something miraculous will be announced tomorrow.
A great new leader and a benefactor offering a low interest loan? , a buyer prepared to pay a reasonable price ?
I live in hope
But I honestly don’t see the billions of dollars worth of contracts profiting ANYBODY so far ...including the government .
Cheers
(20min delay)