a fundamentally underpriced stock

CCI Holdings (CHL) Has been a company with excellent operating businesses-CCI Aust,(having over 50% of the coal superintending market in Australia cornered). CCI Pope (An International Non destructive testing service provider to a wide range of industrial and mining clients) CCI Engineering (A Hydraulic engineering service provider to predominantly the Hunter valley region in NSW) CCI Ukraine (A coal superintending company which has been operating for 12 years in the Ukraine and is growing rapidly with the privatisations which have occurred in coal mining in that region) CCI Indonesia (a growing coal superintending business in Indonesia).....In recent years much of the operating profits were squandered by high overhead costs at the holding company level. This has now been restructured with a 5M debt to the ATO being repaid and financial controls being overhauled. The market has yet to catch up with the fact that this business is now financially strong and able to pursue the strong growth presenting itself in this sector. CHL trades on an EBITDA multiple of just 4.4 times, which compares to TSE, UGL, and WOR which all trade on EBITDA multiples of 16-20. Where CHL does not stack up to these other mining services peers is in the area of operational cashflow for 04/05.....but for 90% of the year they had been required to fulfill a $55,000 weekly repayment plan with the ATO. With this debt now repaid in full, and new 3 year banking facilities in place and a number of other cost cutting measures adopted, CHL has freed up about 3.5M in additional cashflow for 05/06. Cashflow levels for this year should be upwards of +5M and stronger EBITDA of around 7M is also expected, which will bring it's fundamentals in line with these other stocks and could well see the shares increase 3 or 4 fold over the coming year. This is a very good LT investment opportunity, and is no doubt why over the last year or so directors have substantially increased their holdings in CHL.