daclaw wrong - the Forge saga is clearly a project mismanagement issue as distinguished from a market activity level issue such that which has hit Ausdrill. So it shouldn't drag the sector down. CGH were trading at a p/e of around 3.5x consensus earnings. That sounds very cheap, in a sector where so many are way over priced. Obviously the Chairman's expression of confidence in maintaining revenue at a similar level to FY2013 has turned the company's fortunes in a year where most in the sector are probably going to face significant negative movement. As well there was the recommitment to their dividend policy, a big plus in this environment. They seem to be a sound cash generator. I think CGH is starting to distinguish itself from other so called "peers" because of its massively increased diversified business model - combining EPCM, Construction, Consulting, Maintenance, EPC; and blue chip client base. In my opinion, it has always been a matter of time before the market recongises this - don't forget CGH was one of the hardest hit following its big April downgrade (reasons included, disappointing on prospectus forecasts, major sell-off by many of the original IPO investors, who entered on expectations of much larger growth; the "new kid on the block" effect, without a listed company earnigns track record and limited liquidity). Not to forget the uncertainity of not yet having appointed a Group MD to replace Baxter. That will surely be another big confidence booster, so good to see Horsburgh indicate that is not far off.
CGH Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
