Dod eat dog

I recently posted as follows for NWD and neglected to do so for MND.


"I have been looking at the figures for the year to 30/06/2014 for MND (regarded as a successful operator in this industry segment) and comparing them with those for NWD for the same period.

Revenue:
MND - $2.329B
NWH - $1.134B

Employee numbers:
MND - 5300 - down from 7400 prior year
NWH - 3100 - prior year not stated

NPAT:
MND - $146.5M ($156.3M prior year)
NWH - $44.2M ($74.1M prior year)

Profit guidance for 2014/15 year:
MND - not stated but sales revenue for H1 expected to be 15-20% lower than PCP.
NWH - materially lower, significantly dependent on a successful outcome with Samsung

Shares on issue:
MND - 92.7M
NWH - 278.9M

Sales per share:
MND - $25.27
NWH - $4.05

Cash assets:
MND - $217M
NWH - $155.4M

Total debt:
MND - $37M
NWH - $189.4M

Net cash:
MND - $180M
NWH - N/A

Net debt:
MND - N/A
NWH - $34M

Net cash per share:
MND - $1.94
NWH - minus $0.12

New contracts gained in 2013/14 year:
MND - $1.8B
NWH - not stated

New contracts gained since 30/06/2014:
MND - $450M
NWH - not stated but current total work book is said to be $800M

NWH has (recently) stated that Net debt continues at around same figure as 30/06/2014 and cash assets are now around $100M, so basically around $50M of cash has gone across to reduce total debt.
I am suggesting that if NWH pays a dividend then it will probably be around 2.5c max., however the prudent move would probably be to suspend dividens this year.
NWH is looking to win business in new areas (eg. CSG,water,pipelines and similar) which is exactly where MND is also looking to diversify and where it has already recently won new contracts. It could be expected that potential clients may see the stronger service providers as preferred providers and clearly this could adversely affect the ability of NWH to gain new contracts.

NWH was also removed from the SP/ASX 200 several months ago so it is off the radar for some.

Since my last post two days ago NWH has dropped to 41.5c from 48c (down 13.5%) and MND has gone from $9.61 to $9.33 (down 3.1%), during which time the All Ord has gone up 1.1%."

Since the above NWH has drifted to 41c and MND to $9.10.
These SPs are a far cry from the heady days of even 1/1/2014 - $$20.12 (MND) and $2.58 (NWH) with spikes since then to around $28 and $4 respectively.

Still watching from the sidelines. I expect there may come a time when I feel comfortable buying back in again, but it certainly isn't here yet for NWH and as for MND the same goes there.

It is a dog eat dog market with not enough food to go around!

In addition it can be seen from the above statistics that the good, the bad and the ugly are being affected similarly - market sentiment is driving the SPs and value, yield, FA, TA, projections, you name it, they all appear to be out the window.

I have held NWD, do not hold MND and am not a shorter.