Just so there is no confusion - the comment in full. ################################## Some takeovers go well and West Australian Metals (WME) may have snared a timely purchase in Austin Engineering a couple of months ago.
Austin has just won a contract worth $155.5 million for fabrication, assembly and delivery of 792 sets of identical steel products to a major Queensland resource project.
The market has appreciated the news and the stock put on 1.7c to 10.5c yesterday before closing at 10c.
But our friendly analyst reckons the market has not fully appreciated the significance of the deal and reckons WestMetals is worth 20c minimum, and 40c possible.
The company says the imminent contract will ensure solid earnings and an "excellent" foundation for the next three years, adding significantly to existing profitable contracts and product lines.
Successful outcomes from current discussions with project managers of a number of up-coming projects, will further enhance earnings.
(source:etrade - ferret)
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WME Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
