up and away, page-29

Any stock that jumps this fast is susceptible to a pull back (as happened with MSB last week). And analysts peg BKN's fair value around the current price or a bit lower (but JP Morgan sets the target up at $7.94). But there are two key factors that might keep BKN's sp from sinking and possibly move it a bit higher.

1. BKN's guidance is quite positive, both for higher sales and maintaining margins (maybe improved margins with the bad train deal in the past and the new China plant online). Thus, longer term investors are likely seeing a solid and lower risk foundation for share appreciation.

2. BKN has a solid dividend at about 5.4% at current price (using last year's dividend, likely the same level this year). And with the benefits described in #1, that dividend should rise nicely over the midterm or longer.

For a good discussion of BKN's results and analyst comments, see:
http://finance.ninemsn.com.au/newscolumnists/other/8609897/bradken-solid-not-bouncing

As always, please DYOR.