WDS - Walter Diversified Services

[skc]

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.

 

[vincent191]

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

 

[oldblue]

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.

 

[vincent191]

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.

 

[Laohu]

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?

 

[oldblue]

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%.

 

[Laohu]

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!

 

[vincent191]

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.

 

[vincent191]

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.

 

[TheAbyss]

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.

 

[oldblue]

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.

 

[piggybank]

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

 

[piggybank]

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

 

[piggybank]

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.

​

 

[VSntchr]

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....

 

[skc]

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.

 

[VSntchr]

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%...

 

[IrishDigger]

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.

View attachment 56994​

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."

 

[skc]

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

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.

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

Screaming... was the right call.

 

[IrishDigger]

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