We're starting to see some TO activity in mkt with BRS being the latest target. BRS main/only assets are its numerous contracts with various govt bodies and similar plus exposure to MS industry.
UGL has almost 5 Billion dollars of contracted work over next 3 yrs which is not bad for a company with mkt cap of just 390million.
2HFY14 saw a dispute re Itchye project but now appears to be back on trk. 2Hfy16 should se a huge turnaround in earnings and FY17 (by my calcs) on trk to deliver 39c eps and a return to dividends.
Hence at 2.36 i feel UGL is considerably undervalued esp with its entrenched position with servicing the Sydney and Melbourne train/railway systems. These are highly desirable large long term contracts and a firm like Leighton/Cimic would love to grab em.
Will UGL be next on TO list? Time will tell.
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