the cheapest stock in the strongest sector

CHL Has concluded a year long clean-up process after boardroom changes which has lowered debt, and adjusted balance sheet intangibles and asset carrying values to very conservative levels. The benefits of this process have now started to flow in terms of cashflow, which is now much stronger and is allowing the company to pursue many growth opportunities in it's sector.
This process led to large accounting bottom line losses being recorded over the course of the past two annual reports, but correspondingly the company's businesses continue to perform very strongly on an operating level. Hence the opportunity arises to pick up a very profitable little company at bargain based prices.
In their last annual report they posted revenue growth of 19% and EBITDA growth of 40% (in line with much more expensive peer stocks such as WOR,TSE and UGL). Without giving any numbers yet, the company has said they have budgeted for continued growth this FY which has been born out by the results for the first two months. The company will be providing some profitability guidance at Novemebrs's AGM, and now that the accounts have been adjusted the company will return to posting a bottom line profit. On current growth you would expect the company to post EBITDA for 05/06 of 7M and a NPAT of about 3.5M or 2.7cps....Those forecastd put the company on a P/E of just 6.1, when typicaly coal sector service stocks are currently attracting earnings multiples of 25-30 atm due to the expectation for strong growth to continue in this sector for the LT....