Ann: Earnings Guidance Update , page-60

TTC, I totally agree with you.

- Calibre made EBIT of $75.2m in FY12, now forecasting $50m-$55m in FY13
- Their current market capitalisation is $118.3m.
- Revenue was $560.9m in FY12 and forecast to be $680-$695m in FY13

Their cash holdings are also quite healthy at $61.5m. Net debt excl. deferred acquisition costs is $28.2m (Dec 12).

This year they believe they will hit around $50m-$55m EBIT despite decreased mining activity. Around 37% of their revenues are from Asset Management, therefore there is a solid base.

Now with the revised expectation of around a 30% drop in EBIT from prior year has transpired in a drop of 82.5 cents or 68%. To me, this is a great buying opportunity.

How often can you pick up a profitable company at around 2 x EBIT or 0.17 x Revenue?

They also just won another major contract that added around 10% to their order book. Their order book covers around 2 years in revenue.

With the quarterly due soon, I can see a re-rate very soon.

Please supplement with your own research.