Everywhichway you look at it... yesterday's contract win by UGL(20%) was textbook UGL. 1) The contract is very big. 2) Contract is over 8 year period with option to renew for another 7yrs. 3) The contract is with Victorian govt.i.e. UGL will get paid everytime and ontime. 4) UGL was part of the old team with TSE that lost the contract! UGL must have seen weakness in TSE's bid and so formed an alignment with its partners in Hong Kong.... and bingo... back on board with bigger, better, stronger contract.
Victoria requires plenty money to be spent on its rail system. remember the buckled lines last summer? UGL will get 20% of every dollar spent.
Confirms the safety and longetivity of UGL for med & long term investors. CEO has just re-signed with a bonus structure focused on EPS. Hence, holders benefit also. I would have preferred to have bought back at lower SP(naturally) but you can't stay too long out of this company as contract wins are too frequent and provide strong support to SP and dividend stream. Expect 36c in August ffr. BUY.
UGL Price at posting:
$10.19 Sentiment: Buy Disclosure: Held
