I honestly cant see a bounce here atm. I think they are still cleaning out their closet. Until they can prove this has been done investors won't touch it with a 10 foot pole. However, there is plenty of value in this stock.
ATM the market cap is half the equity raising price and with a book value of 10X the current share price its hard to not to see the long term value in the stock. Especially when you consider a lot of their companies have been written down to a worse case senario book value.
Hastie at the moment are very fragmented. I think that is adding to the perceived risk in the stock. With so much management down the line its not hard to be hiding a rabbit in the hat. It also means that a poor performing estimator could cost the company big time. While hastie could cover one poor estimator if there where 2,3,4,5 this could bring the company down very quickly. So I believe having more risk management may be the secret to their success and via merging entities this risk become easier to manage.
Its not hard to see Bill Wild is moving in the right direction. Personally I believed hastie key to survival was a CEO was a good direction stratergy over the long term. Looking at the career history you got to say he is definately the man for the job. I can see Hastie in two years, will be almost be a new company.
The mid tier companies will go. EG Austral,gordon bros, all the ressi service providers while the larger scale commericial guys will become the focus along with mining.
Bill wilds 'friend' back at Leightons will help him along the way wining the contracts to make this all happen.
All this will take time. Bill Wild stated he is the intrem CEO. However that he his here until the company is on track.
This he stated would take two years. So I can't see the hastie cleaning out the closet will take more then 6 to 12 months or that it should be on track by the time the full year earning comes out next year.
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