West Coast - I don't bother trying to guess the share price of...

West Coast - I don't bother trying to guess the share price of SWL. It is so tightly held and thinly traded that the share price can and does do anything. For the record though, I reckon $2 is about fair value for SWL right now - and that comes with a comfortable dividend yield too.

More big contracts in the next 12 months or so will see that value rise. That's why I think today's share price represents such good buying. It's hard to see SWL not picking up some of the work likely to come in infrastructure spending in the next couple of years.

SWL is somewhat unusual in that it often competes for tenders more on specialist knowledge and reputation for delivery than it does on price. That is a valuable competitive advantage in this business.