Is UGL's 14.6% crash to $5.89 yesterday an overreaction

Is UGL's 14.6% crash to $5.89 yesterday an overreaction? Some uncomfortable comparisons can be made with the collapse of Forge Group (FGE) that would spook UGL's shareholders. The shock revelation that management does not know how big a loss UGL will have take on the power station project at Ichthys sounds eerily similar to the predicament faced by Forge as it struggled to complete two power plant projects. UGL may have dodged a bullet with the sale os DTZ for $1.2bn (minus $500m for its capital return). UGL has around $170m in cash (before the sale) compared with Forge's $90m (reported on its last profit release). Still a bad look for UGL and the stock could well come under further selling pressure.