Even maintaning work at this level is more work than they can keep up with as Perry stated in an email. But it would be good ot see them expand and hire more people to take on the extra work. I think they really gave nothing away so it may suggest as you say order book is stagnant but who knows. Still seems to be work around and they are at a comfortable level so if they crunch margins and spend less which is likely due to many expenses being booked last half we should see EPS rise.
A few mining services companies have benn hit much harder than STS and I think they will be back towards $2 by december when earnings guidance comes in. Comapnies hovering at these levels for too long are going to become acquisition targets. At $60 mill you could buy STS and it will pay itself off in 4 years on sheer profits.
STS Price at posting:
$1.27 Sentiment: Buy Disclosure: Held
