We expect API to achieve strong earnings growth in FY07...

We expect API to achieve strong earnings growth in FY07 following a period of restructuring and consolidation. In our view this outlook is not reflected in the current share price, with the stock trading on a low forward PE multiple and high, fully franked dividend yield. The key medium term risk to our forecasts is a major retail slowdown, which we see as unlikely. We view the current negative sentiment towards API as excessive and believe the stock currently represents very good value