You miss the point: a company that pretend they know how and...

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nguyendz

892 Posts.

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18/04/20

22:39

Post #: 44121800
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Originally posted by manjapra: ↑

I know that this has been a recommended stock by some agencies for some time but never saw value-- till now.

I bought recently because I think the level of panic is more than justified by the fundamentals, and I think that it is heavily undervalued for what it offers as a business. The Sunraysia and New Zealand corrections issues (and potentially indefinite timelines to settlement) in addition to COVID and Blackrocks dumping has resulted in share price tanking. The panic is maximum now...however in my view it is a good time to buy with a 3-6 month time frame for a multibanger

This is now an Australian business with most contracts to Governments or Tier 1 clients

Australia (being protected by the biggest moat in the world) is in line to be among the first developed countries to exit out of COVID with minimal life damage.

At this rate it will be business as usual internally in all states except NSW in 2 months and across the country in 3-4months. This is great news because about 4 weeks ago it looked like it would be 6 to 9 months. But because the population is corona 'naive' we will not have herd immunity -- which places us in a unique situation where we are 'holed in' in a safe spot till we have a vaccine that is globally available. --> which means that internal infrastructure projects are where the government will have to spend money on to keep the economy alive; there will be an infrastructure and building boost). There is enough political pressure and understanding for this and now construction sites are allowed to work on weekends.
https://thenewdaily.com.au/finance/finance-news/2020/04/17/coronavirus-fast-track-infrastructure/

As you can see there is an international commodties boost on the horizon as every country will try to do the same to keep their economy chugging along in addition to printing money to fund it. The mining sector will be a beneficiery but so will their support services (There obviously will be a time lag till this happens)

The share was dumped on 30th of March when the COVID graph above was at its peak and we did not know where we were heading... now we have a better idea

-- my point; a construction company with the know how and personnel and contracts in place is either well poised to reap benefits from this scenario or to be a prime takeover prospect;-

That brings me to the key question

What is a fair takeover price for Decmil?

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You miss the point: a company that pretend they know how and then got contract. Now that is dangerous.
look at homeground business case, look at sunraysia as a business case, look at NZ as business case, it is proof that project scope was not managed.

DCG Price at posting: 13.5¢ Sentiment: Sell Disclosure: Held
2 Upvote

0 Great analysis

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