fair value reached

I have divested my position in SWL as of today.

I believe the stock is fairly valued at these levels and any upside from here is based on market speculation.

1 - Project pipeline looks weak out until 2014.
Value of current work book is near IPO levels.
IPO was priced at $1.00.

2 - QLD government has not shown any firm commitment
to infrastructure projects in the near term.
QLD government comprises approx. 80% of SWL's
customer base.

3 - New CEO is unproven, and more importantly, does not
have a major stake in the business.

4 - New business strategy focuses around gaining market
share in industries that SWL has no experience in.
Importantly, the company highlighted that it was seeking
exposure in WA. With miners cutting CAPEX it is
questionable whether this strategy has merit.

5 - Founders of SWL are focusing their business interests
elsewhere. See Seymour's recent foray with Rineheart.

I well and truly hope that SWL manages to turn the ship around. I have been following the stock for a number of years now and I believe that SWL still has the foundations of a great business. However, recent changes in management aptly demonstrate the difficulties the company is facing going forward - they lack a coherent direction going forward. New management has lots of ideas but are yet to demonstrate their ability to execute.
Executing these ideas will require a significant investment (recruiting neccessary expertise, identifying projects, marketing and tendering, execution) and time. The company has net cash of around $35m so it is in a position to do so, however, only time will tell how these investments will impact the bottom line.

Look forward to hearing anyone elses views on the stock.

Good investing to all.