csg uncertainty removed, page-9

I think uncertainty is the problem with WDS. The information we currently know does not warrant a 34.5c share price but it's probably not going to get any better until some positive ASX announcements start to be released.

Regarding the current share price, it has halved since the last downgrade on April 27th where it closed at 68c. There has been no shock announcements since this downgrade so lets compare this to a peer stock such as AJL, which has also come down 34% from $3.24 in mid-April to $2.14 today on no bad news (on the contrary, they confirmed their guidance on 14th May).

Perhaps it's linked to broader issues such as the delay in the FID for the CSG projects due to the RSPT. Perhaps it's due to poor management of both companies. Perhaps it's due to an overreaction due to the market correction. It's probably a combination of all things.

All WDS can do is manage their company to the sectors they are exposed to. I'm hoping they have done this well and if so, we should hopefully see a return to profit and a very attractive PE ratio in 6-12 months. Remember, if it wasn't for their construction division dragging them down recently, they would be on that nice PE ratio already.