Wednesday, January 17, 2007

Big wins for Leighton Subsidiary

Leighton Holdings Limited(ASX:LEI) subsidiary, Thiess Services, has secured hundreds of millions of dollars worth of new waste management contracts. Thiess has been awarded a seven-year, $A150 million contract to manage four transfer stations in Brisbane and the Rochedale landfill site. The group has also secured a $A220 million regional waste collection deal covering the Gosford and Wyong council areas in New South Wales. The new contracts bring to $A400 million the collective total of the contracts that Thiess has won in early January 2007.

This is major growth within the one month. This could be a blessing and a problem in disguise. I wonder if these wins will stretch the company expertise and employees. Still it has to show this company knows how to sell itself.

Leighton is still overpriced for me but I will reevaluate if these wins come through to help out earnings.

Good Luck Investing.

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