When should you start looking at buying beaten down engineering contractors

Brendon Lau

Vantage Point Partners

When should you start looking at buying beaten down engineering contractors? Investors trying to pick the bottom for the sector are in for some heart-stopping times and they should remember there's no first mover advantage to be had in terms of risk/reward. The profit downgrade from Cardno (CDD) is particularly worrying given that it was one of the few with significant exposure to what should be the recovering US market. Softness in Australia was expected but the slower than expected ramp up in the US along with higher costs are particularly worrying. Monadelphous Group (MND) isn't helping sentiment either with management tipping 15%-20% fall in 1H revenue. I'll be waiting for turn in sentiment towards resource stocks before bargain hunting in the sector.

Brendon Lau
Brendon Lau
Associate Director - Investor Relations
Vantage Point Partners

I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...


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