Friday, January 19, 2007

Hasties winning more contracts in Dubai

Hastie Group Limited (ASX:HST) which specialises in refrigeration and air-conditioning has won a major contract in the United Arab Emirates. Hastie Group announced it has signed a $52 million deal to fit air conditioning in a large Abu Dhabi shopping mall. Investors took the news well and pushed the shares immediately 11 per cent higher to a record $2.88.

This announbcement followed on from a 2006 announcemnt where Hasties had won a $40 million contract for air-conditioning in Dubai as part of a joint venture with the Al-Futtaim Group.

Hasties looks to be growing substantially and management appears to be doing a good job. The PE ratio is sitting at the amrket average of 15 but the stock is at its highest level ever. This is a good sign for the company and earnings estimates expect it to grow around 10% a year. Dividends are sitting at 4% and overall this looks to be a moderate purcahse with little technical or fundamental risk.

Good Luck Investing.

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