pb,
In M&A, you are betting on management and it's fair to say that NRW's management have an exemplary track record (Samsung notwithstanding). Remember that contract tendering and execution is the equivalent of making a series of acquisitions. You are estimating costs in the expectation of a discounted cashflow stream. JP knows contracting backwards and understands where asset values, order books, margins, cashflow, etc should naturally sit. He's watched Goldings for 10 years and has a strategic vision most investors are yet to fully grasp, imo.
Another benefit of the deal will be that NRW 's tax losses will be definitely utilised, possibly within 2 years. JP has said that NRW can earn $200m in pre-tax earnings before paying any tax. Not bad.
These tax losses are valued at around 10c/shr, which the market, imo, wasn't valuing. So you can add 10c to NRW's intrinsic value right now.
pb, In M&A, you are betting on management and it's fair to say...
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Last
$3.56 |
Change
0.005(0.14%) |
Mkt cap ! $1.615B | |||
| Open | High | Low | Value | Volume |
| $3.56 | $3.57 | $3.54 | $256.3K | 72.10K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 17 | 4868 | $3.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.56 | 16631 | 18 |
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| Last trade - 10.25am 22/08/2024 (20 minute delay) ? |
| NWH (ASX) Chart |