interesting, page-3

profit upgrade - low pe STS came out with strong profit forecast for 2005. Very undervalued fundamentally, directors have been buying for 7 months. Fairly illiquid volume. I expect further profit growth 2006 . Depending on how you factor in convertible notes and how much tax they have to pay the PE is probably 5-7 for 2005 then maybe forward looking PE 4-6 for 2006. Also cash flow is much higher than profitability so the profit is definitely real.

For my money one of the most undervalud stocks out there at the moment and little risk of things going wrong. They stuffed up bid time diversifying 2-5 years ago and have now whiped the slate clean and are back to the business that has deleivered solid returns for a long time.

TA wise reak fo mid 60's would be a big plus. Almost there and sellers have all disappered.

I'm obviously biased as I hold a heap.

Any opinions welcome.

Cheers
hots