Design and construction provider Decmil Group ($120m market
capitalisation) declined 47% in December after they announced
the final solar project milestone payment was delayed and the
CFO had resigned. The announcement resulted in $100m
wiped of Decmil’s market capitalisation after the CFO
resignation scared the market into thinking there could be
something more sinister than the estimated potential cash
impact of $14m from the solar project. In our opinion the
outcome will be much less severe than what the market is
anticipating and consequently we added to our holding, taking
advantage of what we think was opportunistic buying.