The presentation and commentary highlight what a capital intensive, complex, relatively low margin business segment we operate in, with lots of variability and things that can go wrong out of our control - ie weather. All in all its difficult for this business to get re rated to a higher PE multiple, and growth in Earnings requires large revenue gains which sometimes requires significant capital.
This isn't a space for the feint hearted.
Bottom line - I can't see this getting to the $4 sometimes talked about here in the short to med term. I think anything above $3 in the short term is fair value. Today's low appears to be an attractive buy however for those that jumped in or topped up.
NWH Price at posting:
$2.78 Sentiment: Hold Disclosure: Held
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