My broker has come out with what i think will be a familiar tune from other brokers that have been spruiking this as a buy over the past couple of months.
1.DOW did not communicate to the market that had a review in process, so they are not happy. 2.They are now factoring that the Rail contract will not make money. 3.Today's announcement is viewed clearing of the decks by the new CEO but at a huge hit to the management credibility. 4.Valuation now $8.20.
My view is management rolled out the bad news with the view that confirming the Christmas Creek Contract will put them this bad taste behind them.
Only problem is that fundies have smacked them hard as they didn't see this coming and I am making the assumption that they will be awarded the Christmas Creek contract.
DOW Price at posting:
$4.42 Sentiment: None Disclosure: Held
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