Civmec

Civmec: Announced that it has been awarded a number of new contracts. The value of the combined contracts is in excess of $100m. As at the end of July 2013 the company order book is approximately $190m, if you compare this to their revenue, this streches its earnings visibility to only 2 quarters. Overall demographics for the industry does not look too good, recall Australia's new Prime Minister Kevin Rudd, recently cautioned that the China's resource boom is over, and called for a new productivity pact to boost Australia's competitiveness. Unless Civmec continues announcing new order wins to top up its order book, most investors would still avoid the stock.