DOWNER EDI (DOW) Shares

ABOUT DOWNER EDI

Downer EDI Limited is an integrated services company in Australia and New Zealand with its headquarters in Sydney. The company employs about 53 000 people across more than 300 sites. It also operates in South America and Southern Africa.

Downer EDI Limited’s history started in the 1800s as Walkers Limited and Clyde Engineering in Australia, and the Public Works Department and Electrical Telegraph Department in New Zealand. These two companies merged in the 1900s to form part of the Downer Group. Other companies, such as railway manufacturer, Evans Deakin & Company (EDI) and Mining contractor, Roche Brothers, were also bought, and made out what would be the core division of Downer’s.

In 1933, Arnold Fielder Downer, found the Downer Group in New Zealand as Downer & Co. It focused on providing engineering and construction services to the public and private infrastructure sectors in New Zealand. In 1954, it merged with William Cable Holdings and in 1964 with A & G Price.

Its new name was Cable Price Downer. The company went ahead and merged with various other companies in the following years.

Finally, in 2001, it merged with Evans Deakin Industries to form Downer EDI Limited. It bought Hawkins in 2017 and took majority ownership of Spotless Group Holdings. This acquisition is the largest in Downer’s history.

OVERVIEW OF DOWNER EDI

• Downer EDI Limited provides services to customers in Transport, Utilities, Rail, Engineering, Construction and Maintenance, Mining and Facilities.
• Transport services includes road, rail infrastructure, bridge, airport and port business, and provide transport infrastructure services such as maintenance and earth works.
• Technology and Communications Services, includes civil construction, network construction, commissioning and testing. Utility services includes water lifecycle solutions for municipal and industrial water users and sugar cane waste fired cogeneration plants.
• Rail, includes rail asset solutions, such as passenger and freight build. Engineering, Construction and Maintenance, includes engineering design and civil works for projects.
• Mining includes blasting services and exploration drilling services.

VISION & VALUES OF DOWNER EDI

• Downer EDI Limited’s purpose is to create and sustain the modern environment by building trusted relationships with its customers.
• It promises to work closely with its customers to help them succeed, using world-leading insights and solutions.
• It pillars are safety, delivery and relationships through leadership. Shareholders who purchase company shares can rest assured of superior value.

MARKET PERFORMANCE OF DOWNER EDI

• Downer EDI Limited trades on Australian Securities Exchange (ASX) and New Zealand Stock Exchange and lists under the stock symbol DOW. The company forms part of ASX 100 and also owns 88% of Spotless Group Holdings (SPO).
• Downer’s results for the 2019 financial year featured good revenue growth, a strong increase in earnings, and an improved Group margin.
• Cash performance remains strong, predictable and reliable with Group cash flow conversion of 89.0% of EBITDA. Statutory NPATA increased
  from US Dollar 117.9 million to US Dollar 325.6 million, while underlying NPATA is US Dollar 340.1 million, 14.7% higher than the prior corresponding period.

Buy DOWNER EDI stocks / shares – A Step by Step Guide how to Buy / Purchase DOWNER EDI Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy DOWNER EDI Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN DOWNER EDI STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE DOWNER EDI STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of DOWNER EDI stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy DOWNER EDI stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?