5-6 questions rolled into one

Hi Glenn,

I’m not sure where to start Glenn that’s 5-6 questions rolled into one hence the brevity on each point below:

• Venetia is an infrastructure services business formed in 2015 from a combination of Leighton Contractor Services, Thiess Services & Visionstream, while they’ve also just recently acquired Broadsprectrum which was the old Transfield business – CIM is a part owner. Their most obvious comparable on the market is Downer (DOW) and that will no doubt guide pricing of the IPO – the ticker code when its starts trading in November will be VNT and while I haven’t gone through the detail of the IPO, and pricing will be very important as always, we have a positive view on this business which could be valued at somewhere around ~$3.5bn.
• Engineering and construction business CIM has struggled over the last few years like much of this space. It’s a tough business and more so during Covid – at this stage we prefer NRW Holdings (NWH) given it’s a smaller business growing both organically & via acquisition while CIM is a big business that relies heavily in winning big jobs.
• IOOF Holdings (IFL) we are holding for now – we covered it this week (here) with the conclusion being:  We own IFL in the MM Income Portfolio from ~$3.60, we are backing the turn around that’s underway however we need to remain realistic on the task at hand. It’s complicated, is not a quarterly proposition however the stocks is priced accordingly.
• Zip (Z1P) should be in a strong position as we head into Christmas although competition is intensifying in the space, we have been tempted to cut this position on occasion over recent weeks.
• We like Whitehaven (WHC) around the $2.60 area following its more than 30% correction.

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CIMIC (CIM)

LAST UPDATED 30/10/2021 08:28

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CIMIC (CIM)

LAST UPDATED 30/10/2021 08:28