12 month high chalk it down, page-6

Using the same PE as BHP is quite unreasonable since we rely on the volatile nickel price only.

I'm betting on $5 costs per lb since they have worked a bit on cost savings.

As for me, I think of it in terms of likely dividend yield rather than expected SP. $0.20 EPS with 70% payout ratio is $0.14 DPS. 15% projected dividend yield. It's still a bargain if we can rely on nickel. As long as it stays a bargain, there is upside.

I don't expect the SP to rise too much since it is high risk relying on nickel, but for the moment I am happy to hold onto this cash cow.

As we speak they are accumulating excess cash with no announcement of growth opportunities, either we'll have surprise growth news or we'll have dividends reinstated.