# WDS - Walter Diversified Services



## EZZA (22 August 2007)

Thought i'd start up a new thread on walter diversified services.

Been trying to track a thread on this one and couldn't find one.

Anyway, i bought this stock 2 days after it floated for a 1.65, after missing out on the float being oversubscribed.  Been up to 3.00.

Think this is a quality stock with exposure to mining sector, oil and gas pipelines maintaince, and now exposure to the water sector.  

Dropped off a fair bit, from highs, was at 2.10.  Thought it would hold above 2.30.  Looks like it has broken support at 2.30.  Anyone with thoughts on this stock?

I think this is a quality stock personally.


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## EZZA (23 August 2007)

Looks like some good news for WDS,  has acquisition of MacCormick business a micro  tunnelling and pipe jacking business operating in nsw, wa, qld, and on the international scene.

paying 35 mill for th business, earnings to be accretive from day one as per announcement.

closed 2.30 today, before dipping to 2.14 earlier on during the day.

Any followers of this stock?

Cheers


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## Garpal Gumnut (23 August 2007)

There was a recent article in the AFR, SMH or Age on WDS. With all the correction kerfuffle I haven't been following it. It seems to be an interesting company with good prospects from my memory of the article.

Garpal


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## drasicjazz (23 August 2007)

i ve been wathing wds for a while 
more like a cheap AAX version with simular minds
i was gonna buy some right before the correction
and i'm happy i didn't because  of the correction and i bought something else
but today was like a tunaround, with good  volume on the back of the ann
and at current price (currently about 30% drop from top with no bad news)
i wouldn't be surprised to see more people jumping in

i on the other hand have no spare 


good luck


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## EZZA (26 August 2007)

Yeah, looks like some people were jumping back on board on friday.
rising to 2.45 before closing at 2.36.  Nice to see it move against the tide,
where market closed down.


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## EZZA (29 August 2007)

for those interested bell potter report on wds website, valuing them at about 3.20.

will seriously consider topping up at some point, or possibly looks at some other alternatives.  Just looking for an entry point, with market volatility, should be opportunities to get in at decent price i reckon.


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## EZZA (1 November 2007)

ANYONE KNOW WHAT THE TRADING HALT IS ABOUT?

any speculators out there have not idea.  can't see it being a bad thing, a the puppie has been accumulating contracts nicely.


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## michael_selway (1 November 2007)

EZZA said:


> ANYONE KNOW WHAT THE TRADING HALT IS ABOUT?
> 
> any speculators out there have not idea.  can't see it being a bad thing, a the puppie has been accumulating contracts nicely.




Hi not bad

*Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 15.7 20.1 22.1 28.1 
DPS 4.8 10.7 11.4 15.4 *

thx

MS

Walter Diversified Services is a provider of specialist services to the underground coal mining industry and pipeline construction and maintenance services in Australia.


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## EZZA (2 November 2007)

hi guys, 

any existing shareholders buying into the shareplacement at 2.60. ?

thinking of selling out of one of my spec stocks to buyin.

thoughts, probably a good thing, wds looking to reduce debt and want to make more acquisitions, only downside i see it dilution, which probably isn't that bad it WDS want to add some bolt on acquisition that add value to the company.


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## winningstreak (27 November 2007)

As a shareholder I bought in today at $2.60 - looks like easy money to me but Ive said that before and been burnt!


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## michael_selway (27 November 2007)

winningstreak said:


> As a shareholder I bought in today at $2.60 - looks like easy money to me but Ive said that before and been burnt!




It looks liek a pretty good stock

*Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 15.7 20.8 23.6 30.3 
DPS 4.8 10.0 12.0 17.0 *



> Date: 14/11/2007
> Author: Gabriella Hold
> Source: The Australian Financial Review --- Page: 37
> Australian-listed mining services groups have generally benefited from theresources boom of recent years. This has been reflected in the share prices ofmany smaller companies in the sector. Walter Diversified Services' shareshave risen by 54.1 per cent in 2007, while Industrea reached a new high of$A0.685 late in October. In contrast, Coffey International shares have fallen byabout 23 per cent since reaching a record $A5.04 in April, although the stockhas since recovered some lost ground






> Business Description
> Walter Diversified Services is a provider of specialist services to the underground coal mining industry and pipeline construction and maintenance services in Australia.
> 
> Company Strategy
> Walter Mining employs a strategy of developing whole of mine operations by providing specialized technical services to clients in the form of pre-feasibility studies which includes mine infrastructure planning and development, coal mining and mine planning and development. Such operations would enhance WDS income stream and would further diversify the Groups revenue base. Walter Diversified Services reported NPAT of $12.02m for the year ended 30 June 2007. Revenues from ordinary activities were $221m. Diluted EPS was 13.96 cents compared to 5.90 cents last year. Net operating cash flow was $8.33m compared to $2.36m last year. The final dividend declared was 4.8 cents, taking the full year dividend to 4.8 cents compared with 0 cents last year.


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## EZZA (21 January 2008)

picked up more the other thursday at 2.23.  friday solid announcement.
had to let go of allco finance was losing too much on me, so i switched to wds.  

will expect this stock to move back up over the next few months when things settle down.


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## EZZA (29 April 2008)

sold out yesterday at 2.49, i c resistance at 2.60.

if there is a pull back will look to go back. happy to take profit as this stock was at 1.90 not too long ago. fundamentals haven't really changed though, just happy to trade now.

i'm hoping for some tax lossing or profit taking before end of financial yr, maybe resulting in a pullback.


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## Steve_QS (3 June 2008)

Current thoughts on this stock? how has it been able to do as well as it has with relatively no great news as of late and still out preform the market?


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## TheAbyss (3 June 2008)

Pretty simple really, CSG.

WDS provide specialist mechanical engineering and pipe fabrication services, which enable DCC to provide a much broader service offering in the rapidly growing coal seam gas markets in Queensland and New South Wales.

I opted for AJ Lucas howver WDS are in a good position also on the back of their Coal services to india etc


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## Bolivia (28 January 2009)

Can anyone explain the recent extreme downward movement in this stock. 

According to Macquaries numbers, and these have been revised since losing a couple of coal contracts, they are trading at close to 2 times earnings and a 25% yield.

Total debt about 55Mill with nearly all long term. 

I understand there is alot of nervousness about any mining service related businesses, but surely alot of the existing mining infrastructure as well as new(not necessarily mining) infrastructure, will need to be maintained. The older infrastructure gets, the more it needs to be maintained. 

So a business that has exposure to new and old infrastructure, via maintenace or implementation, has a better chance of surviving??

Thoughts anyone?

I don't own any stock but am very interested.


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## skc (2 February 2010)

Bolivia said:


> Can anyone explain the recent extreme downward movement in this stock.
> 
> According to Macquaries numbers, and these have been revised since losing a couple of coal contracts, they are trading at close to 2 times earnings and a 25% yield.
> 
> ...




It never ceases to amaze me how price action suggest someone knew something that others didn't, and start selling before the actual announcement came about.

So breakeven in first half, small profit overall. But the market doesn't seem to believe it, making the share down by 2/3. Massive 11.5m volume.

Full year NPAT now $7m. With 140m shares outstanding that's 5c EPS. So PE at current 53c is about 10x. Obviously the price will fluctuate due to those who don't believe management forecast and those who are optimistic of a recovery.

imo the selling is overdone. At least they didn't do a NOD and says they have commenced talk with bankers!


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## skyQuake (2 February 2010)

skc said:


> It never ceases to amaze me how price action suggest someone knew something that others didn't, and start selling before the actual announcement came about.
> 
> So breakeven in first half, small profit overall. But the market doesn't seem to believe it, making the share down by 2/3. Massive 11.5m volume.
> 
> ...




Heard on the vines that 11 mil shares from one broker are done. But rumours theres 23 mil still being done by another.


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## skc (2 February 2010)

skyQuake said:


> Heard on the vines that 11 mil shares from one broker are done. But rumours theres 23 mil still being done by another.




Interesting. Was very tempted to dabble into this but ended up just watching it...

I am losing count of all the mining services outfit that issued profit warnings... WOR, WDS, AJL, AAX, NOD...

Anyone like to add more? And who else will be reporting soon?


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## Wysiwyg (2 February 2010)

48,442,485 shares turned over today making it the biggest WDS volume day by far ever. Massive reaction to this revised outlook.  


> Outlook
> The revised FY10 guidance is for EBITDA of approximately $31M and NPAT of approximately $7M.The revised guidance incorporates the following: http://imagesignal.comsec.com.au/asxdata/20100202/pdf/01034191.pdf


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## skc (3 February 2010)

skyQuake said:


> Heard on the vines that 11 mil shares from one broker are done. But rumours theres 23 mil still being done by another.




Some instos are such crazy idiots...

Low yesterday was 52c, price now 82.5c. Those who sold 23m shares must feel awesome today.


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## vincent191 (7 April 2010)

Something is going on.....over 82 cents today. If rumours of a t/o is true, this thing could go up to a $1.


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## oldblue (7 April 2010)

vincent191 said:


> Something is going on.....over 82 cents today. If rumours of a t/o is true, this thing could go up to a $1.




What can you tell us about these "rumours", vincent?

None of my usually reliable sources seem to have heard a peep.


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## vincent191 (9 April 2010)

oldblue said:


> What can you tell us about these "rumours", vincent?
> 
> None of my usually reliable sources seem to have heard a peep.




There was discussion on the other forum about changes in substaintial shareholdings. UBS shareholdings had gone down and Pala had gone up and someone speculated that there could be a t/o. 

As I stated my post was based purely on rumours and speculation. I never claimed it came from any reliable source.


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## Laohu (9 April 2010)

UBS and PALA seemed to be one upping each other? Pala would buy, then ubs would buy more, pala comes back again, then quest (?!) sold, then ubs bought up to around 15%... then ubs release a ceasing to be a substantial holder notice mentioning rehypothication? "N/A change of holdings occurred as a result of a change in *rehypothication* rights

*rehypothication:* "The pledging of securities in customer margin accounts as collateral for a brokerage's bank loan".

Can anyone anglicise that for me please? So ubs ceased to remain a substantial shareholder, but there was no change to the holdings? Were they doing this on someone's behalf?


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## oldblue (10 April 2010)

My interpretation of that is:

UBS lent money to a party to buy WDS and took security over the shares, registering them in the name of a UBS nominee company. Beneficial ownership remained with the client.
Total UBS holdings in various subsidiary names took the total over 5% causing UBS to give the required SH notice.
The client repaid the loan, UBS transferred the shares to the client. No change of beneficial ownership. UBS total holdings fall below 5%.


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## Laohu (12 April 2010)

Thanks oldblue; I wasn't sure how that all worked, great explanation. 

Now just waiting to see what pala does about it, whether it is this rumoured privatisation or something else? I've no idea so am on the sidelines!


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## vincent191 (22 April 2010)

WDS is in a trading halt until next Tuesday.  After a run of bad news hopefully this time it is good news. Anyway' it is too late to do anything now except hope and pray. Hopefully the CEO will want to impress and announce a new contract or a profit upgrade, also it could be  he found more dead bodies in the cupboard....Hahaha But I don't think so, there is no stench coming out of the cupboard, there had been no large short sellers reported in ASX.


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## vincent191 (27 April 2010)

WDS has taken another hit today after coming out of a trading halt. Another profit warning and recent flooding in Qld has effected it's operations. Sentiments in this Company is at an all time low. Anyone interested in catching falling knives may want to have a look at this Company. See their latest announcement.


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## TheAbyss (17 December 2010)

Time to share this one. Services provider to Santos, QGC and Arrow so is very well placed to leverage Gladstone CSG plant. Presumably this is what is behind the share surge of late plus Pala is almost at >18% now so take over bid potential is also fueling the SP.

Liking it for now.


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## oldblue (20 June 2012)

beatthemarket said:


> This is a turnaround story, but the turnaround keeps getting pushed back. The current eco climate could result in project delays, which will especially impact the Energy and Infrastructure side of the business due to its high fixed cost base. The mining side of things is also likely to feel some pressure with mining companies threatening to delay or shelve projects, while a recent contract dispute with Peabody could cause some reputation damage.  Their FY12 to be strongly weighted toward 2H, but in our view there is downside risk to this forecast. WDS is cheap at current levels (FY13 PE of 5.8x), but we believe it will be difficult for it to generate a significant positive earnings surprise until at least 1H13.




Who is the "we" here?

If it's a broker, I'd like to know if they have a professional interest in WDS.


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## piggybank (22 October 2013)

One that seems to have evaded the general forum... A nice doubling of the price since the end of July.


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## piggybank (13 February 2014)

Daily P&F Update (For What It Is Worth!!)


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## piggybank (27 February 2014)

WDS REPORTS DOUBLING OF FIRST HALF NET PROFIT AND DIVIDEND - WDS Limited (“WDS”) is pleased to announce its financial results for the half year-ended 31 December 2013.

*Highlights*

* Net profit after tax (NPAT) $7.4 million and earnings per share 5.1 cents - NPAT up 111.7% on previous
   corresponding period (pcp).
* Group revenue of $175.4 million - down 7.1% on pcp.
* Energy Division recorded strong revenue and profit growth with revenue up 19.4% to $144.2 million and EBIT of
   $15.2 million (compared with $5.5 million in pcp).
* Mining Division awarded $142.8 million Eagle Downs drifts contract.
* Balance sheet strengthened further with net cash of $49.8 million compared with gearing of 3.3% at June 2013.
* Order book at near record levels with $376.0 million of work in hand.
* Introduction of new dividend policy with increased payout ratio of at least 80% and a move to quarterly    payments, commencing with payment of first quarter dividend of 1 cent per share in December 2013
* Second quarterly dividend for 2014 of 2.0 cents per share bringing the total dividends to date for FY14 to 3.0 cents per share to be paid on 27 March 2014.

Commenting on the results, WDS’ Managing Director, Terry Chapman noted “This result further emphasises both the purpose and underlying strength of WDS’ diversified business model with a significant growth in earnings over our results for HY13. These are difficult times for the mining services sector.....

The remainder of the announcement can be read here:- http://stocknessmonster.com/news-item?S=WDS&E=ASX&N=784698

Closed today at $1.08 (up nearly 14% over the past couple of days). This can be attributted to yesterday's very good announcement.

​


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## VSntchr (13 October 2014)

Did someone say "heavily weighted to the 2nd half"....where have we heard that before for a mining service cpy! 


This announcement is a big worry for me if I was a holder. It kind of reminds me of FGE a year or so before the bust. Earnings downgrades, contract problems and new leadership....


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## skc (13 October 2014)

VSntchr said:


> Did someone say "heavily weighted to the 2nd half"....where have we heard that before for a mining service cpy!
> 
> 
> This announcement is a big worry for me if I was a holder. It kind of reminds me of FGE a year or so before the bust. Earnings downgrades, contract problems and new leadership....




It's not contract problems. It's just the work is drying up and margins are contracting.

TTN and WDS play in the same CGS area and their path certainly mirroring each other.


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## VSntchr (13 October 2014)

skc said:


> It's not contract problems. It's just the work is drying up and margins are contracting.
> 
> TTN and WDS play in the same CGS area and their path certainly mirroring each other.




Typed that quite quickly, but I guess what I should have said was order book problems...contract problems in that they aren't going to have enough of them!

And the market does not like it one bit...down 67%...


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## IrishDigger (10 November 2014)

piggybank said:


> WDS REPORTS DOUBLING OF FIRST HALF NET PROFIT AND DIVIDEND - WDS Limited (“WDS”) is pleased to announce its financial results for the half year-ended 31 December 2013.
> 
> *Highlights*
> 
> ...




And now this,

*Trading Halt*

"The securities of WDS Limited (the “Company”) will be placed in Trading Halt Session
State at the request of the Company, pending the release of an announcement by the
Company. Unless ASX decides otherwise, the securities will remain in Trading Halt
Session State until the earlier of the commencement of normal trading on Wednesday,
12 November 2014 or when the announcement is released to the market."


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## skc (3 September 2015)

RIP WDS. Last year you had a strong balance sheet. This year you have gone bust...



VSntchr said:


> Did someone say "heavily weighted to the 2nd half"....where have we heard that before for a mining service cpy!
> 
> This announcement is a big worry for me if I was a holder. It kind of reminds me of FGE a year or so before the bust. Earnings downgrades, contract problems and new leadership....




You called it VSntchr, with perfect timing too.



KnowThePast said:


> But everything about WDS is a screaming buy to me, obviously.




Screaming... was the right call.


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## IrishDigger (1 February 2016)

Given that WDS Limited is now in receivership and is apparently being wound down, how long will it remain listed on the ASX?

http://www.kordamentha.com/creditor-information/australia/152


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