GVA --HIP DEEP IN THE BIG MUDDY -- THE BIG FOOL SAYS PUSH ON
GVA at the annual general meeting says it is doubling down on the prospects for heavy civil construction contracts.
The Q1 big time loss was ignored and profits were talked about in terms of gross margin instead of net profit.
GVA is in the same profitless dilemma as many big time contractors[ MK, Merrit, Chapman& Scott, S.J Groves, Guy F. Atkinson,-- to name just a few ] that went before it.. All spouted high hopes and pie in the sky forecasts-- all went belly up.The only construction companies that have made reasonable profits are those that have significant design build capacity, mining capacity and/or long term contracts-- [ Washington Group,
Shaw, Kiewit, Fluor, Bechtel]
GVA is hip deep in the big muddy, and it will soon be up to it's neck because there simply is not enough profitable work, and what work there is has intense competition.