the big picture

VDM Group

The positives:
1. Current NTA is approximately 10.3 cents.
2. Current cash backing per share of 3.1 cents.
3. Company is starting to win work with WIH increasing from $170 million in March to currently approximately $240 million.
4. More work wins likely in the short term with CEO stating after the most recent win that "we are confident that VDM is close to the formal awards on several other projects"
5. Potential asset sale of Cape above net asset value will increase NTA, remove all debt and increase cash balance.
6. Simplified strategy should assist in winning work.
7. Directors now have significant holdings in the company.

The negatives:
1. Historically poorly managed. This risk is reduced to the degree as management have been replaced. New management appear to be moving in the right direction, however, more time is required to judge performance.

Overall, I think this could be the turnaround story of 2011/12!