NRW Holdings (NWH) $50m writedown is likely to leave the mining & civil contractor nursing a FY15 net loss of around $18m on my estimates but the bitter pill...

NRW Holdings (NWH) $50m writedown is likely to leave the mining & civil contractor nursing a FY15 net loss of around $18m on my estimates but the bitter pill is also likely to increase the takeover appeal of the group. At an operating level, there is more bad news. Management is trying to claw back additional cost from client Samsung for the Roy Hill project, which leaves me to estimate a 28% drop in full year op EBITDA. The good news is that NRW can sustain dividends if it chooses to and DCF valuation still come in materially ahead of where the share price is (this has been the case for a long while but this, along with it's seemingly high dividend, won't be enough to support the stock). NRW is down about 60% this year. At some stage, the stock will be worth looking at from a value perspective. But I think more water will need to pass under this bridge.