NWH - NRW Holdings

[WASL]

Hi All,

Anyone got this on their radar? Could be a new Ausenco (AAX). Significant sp apprecition since listing early September. Current price $3.24.

Regards


WASL

[Footsie]

Phaedrus

This stock appears to have formed a base after a dramatic fall.

Its appeared on my radar as it has

1) formed a higher low
2) rising on big volume
3) close to breaking out of resistance at 28-29c
4) above its 21 day ema


Thoughts?

PS my fundamental view on this stock is neutral

[Phaedrus]

Technically the view is quite positive.

NWH is in an uptrend, with a confirmed trendline already in place. Note the 9 consecutive "up" days that fuelled the reversal - that had never happened before. I have added a trailing stop (magenta). The 2 "Buy" signals shown here did not fire simultaneously, but both gave an entry at about 21 cents. Anyone using candlestick patterns to follow this stock would have got in much earlier. The 2 high volume "up" days (green bars) look good. I wouldn't place any credence on ema21 signals, though.

[Footsie]

Thanks

what is your viewon the resistance at the 28/29c level?
clearly the stock is having some difficulty breaking this.

[Phaedrus]

What is your view on the resistance at the 28/29c level?

It's there, it's real and I should have marked it on it on the chart.

I do note, though, that the peaks are at 28 then 28.5 then 29 cents. I wouldn't want to make a big deal out of that, but IF it continued, that equates to a rise of 20% pa!

I guess that, philosophically, I have trouble talking about resistance in the face of a soaring OBV.

[Footsie]

Resistance has been smashed.

Looks good to continue its run.

[modandm]

Been having a look at some fund manager small cap picks for ideas and came across NWH - it is described as:
a Western Australian based provider of services to the resources sector. The company provides civil contracting services including rail formation, bulk earthworks, mine development, road and tunnel construction and a range of contract mining services. Blue chip clients among others include Rio Tinto, BHP Billiton and Fortescue Metals Group.

FY11 eps forecast is 17.1c for a PE of about 17x. Analysts are picking 25% eps growth to FY12. PER of ~0.7. Not bad.

It has been on a great run from 14c in 08 and 90c in 09 to a current SP of about $3. How have we all missed this multibagger. I have never heard of it being mentioned. May well be of interest to others as bullish on mining services as I am.

Here is the latest preso:
http://www.nrw.com.au/images/PDF/ASX...esentation.pdf

[steve fleming]

Infrastructure development

Another rare direct beneficiary from the federal budget is NRW Holdings (NWH). Swan is tipping another $3 billion into infrastructure development around the country, which will be used to build new roads and rail networks.This takes total government spending to $24 billion over the forward estimates, and NRW is probably the most exposed small cap engineering contractor to this given that its civil division contributed around 60% to total revenue in the first half of 2012-13, with the balance coming from mining-related work.While it is hard to quantify the benefit for NRW at this stage, the group is in seen to be in a good position to at least secure some of the new infrastructure work given its good reputation in executing projects. This might be particularly so in its home state of Western Australia, which has been promised more than $400 million for infrastructure by the federal government.Any improvement in the outlook for infrastructure development is good news for NRW, as the industry faces a marked slowdown in mining projects due to volatile commodity prices and high domestic costs.While the budget won’t spark a positive re-rating for the stock or assuage investor fear that it is next in line to issue a shock profit warning, a lot of the bad news is currently priced into the stock after it collapsed 64% over the past year to $1.26 a share.Consensus estimates is forecasting a 29% plunge in adjusted net profit to $69.7 million from 2011-12 to 2014-15, but the current share price seems to indicate that the market is expecting its bottom line to crash by around 60% over the time period.

Read more at Eureka Report: http://www.eurekareport.com.au/artic...#ixzz2TQ4ApVfn

[mark100]

TTI should benefit from extra road spending without the mining sector drag. The downside is it's high debt load and illiquidity. But the interest cost is falling due to lower interest rates and debt refinancing. Potentially very cheap. Pie Funds have a few and so do I.

[Joshuatree]

Cant help looking at value traps ?like this. S/P less than NTA. 14% div PE sub 4. Civil division re 60% of rev a beneficiary of swans govt spending(thanks stevef). Now re $1.07. No downgrade out, most M/S companies have done this by now.

S/P now 73c!! Mkt cap $205 mill Ive lifted this from another forum

!As a matter of interest the current Thomson Consensus Estimates (four brokers) are:

........... 2015 .. 2016 … 2017 .. Average
EPS … 13.8 ... 12.7 … 15.6 … 14.0
DPS ,… 9.0 …. 8.0 .…. 7.1 ….. 8.0