Article on HST on page 35 of the AFR today. I don't subscribe to...

Article on HST on page 35 of the AFR today. I don't subscribe to their online website so can't copy here but essentially the gist is:

Unseasonable weather is casting doubt on Hastie and other firms in the sector making earnings guidance.
Hastie has a strong order book but the weather is a significant risk.
At 96.5 cents stock is on a PE of around 6.
Confirmation of revised debt covenants seems to have stabilised the price and a lot of the bad news is baked in.

The article also discusses Frigrite (separate company) which provides air con services to supermarkets and the woes they are having - I think Mike referenced in an earlier post late last year the Woolworths contract they lost and possibly an opportunity for Hastie

My take on Hastie is that they are in a slow patch right now and I'm not expecting much from the first half result. However for me the fact that the slow patch seems down to deferment of contracts - not lost contracts - gives confidence and that given the stock has fallen nearly 50% with a PE of 6 IMHO this is the right time to buy. Hastie is a quality company with issues down to timing and external factors. I do feel debt levels are too high though and I would be happy if they scaled back/eliminated the div and used the proceeds for repayment.