Nick Bown CEO of Macmahons has resigned sending there shares down 40% to 30c. This is off the back of there poorly performed civil side. Ive got a buy order in as I believe that they will win the contract to supply 6 to 700 workers to FMG's Christmas Creek operations.
Well the new CEO of Macmahons was on ABC TV's Inside business today. The previous management really screwed the pooch on their part of Rio's $100M Hope Downs railway project. The new CEO coyly blamed project synchronisation early on in the project, but 1of the show's panel members raised the question of how things could've been OK at EOFY reporting in June & 40% down in September when the CEO & W.A. State manager resigned without notice. Raising the very real possibilty of a class action and ASIC investigation. The new CEO has a hell of a job on his hands. His predecessors were clearly incompetent, got out scott-free by resigning and he's been left with the job of cleaning it up (possibly not a good judgment call taking the job). This isn't the first rail project they've screwed up, they mucked up a BHP job a few years earlier. Handling large $ projects that you have little margin in has historically been a slippery slope. They've seen the end of Thiess, Roche Bros. Leightons... keep your eye on Transfield (the Collins Class Subs nearly sank them )
Interesting week or two on news of there possible FMG contract. I believe that they have won it and I'm hopeing for a positive spike in share price in a environment what can only be called volatile. I'm still EXTREMELY heavy in FRG and going back in to buy some more.
***TRADING HALT* There going to announce there biggest project ever and I'm about to ride the spike. Well I'm in hope the market reacts well the the news. Next stop FORGE RESOURCES, you heard it first here
