Bullish Sign? - Bounced off 200 EMA, page-3844

Hi Sabine,

this vid at the 3 min mark confirms to me the issue NRW has with fund managers atm - it’s not hated at all but they are worried that NRW will have a period chasing the increasing cost of labour, trying to get clients to pay more but the cost keeps going up.

Marcus Burns also mentions the general risk of executing the projects, I think that’s more a style thing - some FMs will probably never go for companies with a business model that includes the sort of risk that is just part of NRW’s area. I’ll guess he’s also somewhat biased against NRW for historical reasons and that slightly simplistic assumption - not recognising the progress it’s made to become less exposed to individual projects. Just my 2 cents and I’d say it’s common among a certain style of FM.

As I said a while back, if NRW can show in August that they have recouped margin lost during COVID or have turned it around for the second half of fy21 then the FMs will get back in IMHO.

On the other hand, medium term, the investment case is still strong for me - they will continue to strengthen and leverage the new much bigger more diversified business but it may take well into next year to build a killler result (bigger rev and restored margin). I plan to try to add to my position as money comes free elsewhere but no rush for me tbh. If we get a big market shock on China or similar there is a long shot chance of lower buying opportunities.

All just my opinion, DYOR etc,
cheers
pb