DOW - Downer EDI

[bowser]

MACD looks promising Kennas.

Wouldnt be surprised if previous resistance become support (around $6), and then see DOW try to reach $6.80+.

One to watch over the next week.

 

[Sean K]

Time to go long DOW.

1104 [Dow Jones] Downer (DOW.AU) up 2.9% at A$6.80, hits A$6.82, up nearly 8% in 2 days on "Friday's talk was of a Leighton (LEI.AU) bid," says senior institutional trader. Another dealer says there's talk of an A$8.50 takeover bid. Follows Oct. 19 revelation from DOW that LEI bought small shareholding in early Sept. LEI and WorelyParsons (WOR.AU) have been rumored as potential acquirers of DOW. Recent confirmation of support from former resistance near A$6.25 leaves pressure on major resistance at A$7.00. Break targets A$7.60-A$7.75 area. (DWR)

 

[Sean K]

DOW now rumoured to be taking some UK services company....

Still other rumours flying about that DOW will be the target.......

I sold out at $5.60 after what I thought could have been the dead cat bounce after the disasterous right in August on the Iluka deal. Seems that was a bit premature. Stock has recovered very nicely and trending back up.

Circle indicates last takeover spec on DOW.

 

[matti_pacman]

It has recently won the NSW rail contract and is consolidation around the $7 region... Good time to get back in? Stock looks bullish to me...

But i guess the lack of transparency in management and potential for other contracts fallout is scaring me abit.

 

[Sean K]

It has recently won the NSW rail contract and is consolidation around the $7 region... Good time to get back in? Stock looks bullish to me...

But i guess the lack of transparency in management and potential for other contracts fallout is scaring me abit.

Matti, I don't think they can afford to get it wrong again. They sacked all the peoiple responsible for the lack of info flow on the contract problems. This was a great buy a month or so ago. Takeover tumours have given it drive and the rail deal was a coup. I am a big supporter of this company and waiting for a decent pullback to get back in.

 

[Sean K]

Looks to have consolidated nicely the past week or so and might be a buying opportunity. Looks like good support about $6.90. Will be looking to buy in on a break through $7.10 possibly. Had a great run since the sp implosion mid year.

 

[maverick11]

i wouldn't kennas mate. More losses expected jan sometime...

 

[Sean K]

i wouldn't kennas mate. More losses expected jan sometime...

Really. Do you work there? I'll save my money then, cheers.

 

[Sean K]

i wouldn't kennas mate. More losses expected jan sometime...

Perhaps in Feb, then?? Maybe March?

Half yearly results due 23 Feb, so maybe then?

 

[Sean K]

On the chart has found resistance as expected around $7.50 ish after the break through $7.10. $7.00 ish should now be support and a break through $7.50 would be very bullish IMO, probably sending it to next resistance at $8.30 ish.

As long as the downgrade/loss doesn't eventuate....

 

[Halba]

looks like the recovery stock of 2007 huh

 

[Sean K]

looks like the recovery stock of 2007 huh

Maybe. I'm a bit bearish overall right now.

Waiting for a correction....that's not coming

On the chart, note the MACD rising and just about to break signal line. VG.

However, if DOW do ann further losses due to cockups, they'll be severely punished, perhaps even worse than Aug 06. Not comfortable getting back into this until they confirm they're back on track.

 

[Halba]

Hi kennas

My opinion is this. Correction won't happen to every single stock right in the end of reporting season. 1/2 of the companies that beat expectations will gradually increase, and the ones that don't will be the ones to correct.

The good co's will not correct IMHO as they are beating expectations.

 

[Sean K]

Ann out. I'm hopeless at reading these things. Need to be able to compare to last years and guidance throughout. Can't see any additional write downs or losses.....Will be interesting to see how the market takes it.

 

[sammy_k2000]

So a skilled labour company that is currently looking cheap and possibly about to post a nice profit. Should be a good month for holders and if not with GUD in play I can only imagine that it won't be long till Downer is in play with its price so low.

 

[maverick11]

I’m very bearish towards DOW. As a company on a whole, they may be doing ok(ish) but one major portion of their business is doing poorly & they are also undergoing a lengthy legal dispute with a major client for their approx $100M loss.

 

[sammy_k2000]

Mav which part of their business is doing poorly? Most of their mining arm are in partnerships with the companies running them in which they share part of the profits and I can only see this been a benefit to the company. As for the legal dispute this has already been heavily factored into the share price as it was that loss that caused the massive loss in share price in the first place.

Cheers

 

[sammy_k2000]

Uh oh any ideas on the trading halt today? I can only hope that this might be some better news. Its make or break time for this company.

 

[Sean K]

This company needs to be taken over and shown how to do it.

Problem after problem after problem.

Downer's flat earnings spark share price slide
November 3, 2007

DOWNER EDI's share price fell more than 12 per cent after it warned that earnings were likely to be flat because of softness in its mining division caused by lost contracts, wet weather and port congestion.

"Earnings before interest and tax (EBIT) for the year will be around $280 million," interim chief executive Brent Waldron told the annual meeting in Sydney.

The engineering giant posted an underlying EBIT of $281 million in 2006-07.

Downer's share price fell 12.8 per cent, or 85 ¢, to $5.79.

 

[SevenFX]

This company needs to be taken over and shown how to do it.

Problem after problem after problem.

Couldn't Agree More.

July 28th 2006 Gap Down 30.5%
August 2nd 2007 Gap Down 16.5%
November 2nd 2007 Gap Down 12.8%

Contracting Gap Down are Good Aren't They...???

SevenFX