Hochtief was a quality company being run into the ground by Madrid - they still do a bit of work in the UK, but less and less in Europe generally.
One or two things to consider: Hochtief will be in court for years due to a tunnel collapse at Rastatt - will cost them
ACS also own Dragados, one of the JV partners in Seattle Tunnel Partners "big Bertha" fiasco - that will cost them dearly also.
Very hard to make good money in construction anymore - all about managing cashflow. Another true story - Thiess/ John Holland/ Dragodos, the JV that built the north west rail link tunnel and stations package (Sydney Metro - Bella Vista - Chatswood) made a decent profit, at practical completion. All that job's profits are now gone (as of a few months ago) fixing defects. Couple that with the disastrous Linewide contract, (CPB-UGL), now deep in the red.
There are better ways to deploy capital....!
CIM Price at posting:
$22.00 Sentiment: Sell Disclosure: Not Held
