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.

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

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

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

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.

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.

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.

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.

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.

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!

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.

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.

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.

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?

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

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.

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.

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.

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!

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.

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!

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

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?

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

WDS - Walter Diversified Services

EZZA

EZZA

Garpal Gumnut

Ross Island Hotel

drasicjazz

EZZA

EZZA

EZZA

michael_selway

Coal & Phosphate, thats it!

EZZA

winningstreak

michael_selway

Coal & Phosphate, thats it!

EZZA

EZZA

Steve_QS

TheAbyss

Bolivia

skc

Goldmember

skyQuake

skc

Goldmember

Wysiwyg

Everyone wants money

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