Yesterday's ann that DOW had failed in the bid to build Canberaa's light rail network has hammered the SP. Firm released an update saying the tender cost of 13m has been a write-off. CEO also adjusted the estimated FY16 NPAT target to 180m.
Buggered if i can find an Appendix 3b with latest # of shares on issue. So it won't be exact but FY16 eps should be around 40.8c. I've just doubled-up at $3.11av and at that price it has DOW on a PE of just 7.62. Not bad for a firm that has shown its estimates well in advance.
I've adjusted my FY divs down to 22c ffr. That produces a gr yield of 10.1%. i.e. above the exceptional 10% level. On IFL thread i noted how i feel in FY16 high/very high divs will influence the SP more than in past yrs due to current deflationary environment. Hence, i increased my holding by 55% this morning. DOW at these levels is a med risk/high return play by my reckoning. HY not far away. dyor.
DOW Price at posting:
$3.10 Sentiment: Buy Disclosure: Held
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