A few major reasons why I do not like construction/mining services companies.
1.) They are contractors. Their income is limited to the work they can win via tenders. If they stuff the tender, they stuff the entire profitability of the project. The consequences of a stuffed tender may not show up for YEARS.
2.) Easy earnings manipulation. Company wins 100mil contract. Do they book it in the first year? No! It is booked over a number of years. Great video on the subject http://www.youtube.com/watch?v=U3_ua9JWOlo&list=PLsYi2Vst4D_cJlOVAJsQ3ZQsYV46nmW81&feature=c4-overview-vl
FGE Price at posting:
91.5¢ Sentiment: Sell Disclosure: Not Held
