Ann: Appendix 3C - Announcement of buy-back , page-3

Hi Ormond.

I was going reply on the FSA thread but I thought it be more suitable to do it on this one.

At first glance, I did not care for this share as its last two consecutive ROEs have been below 10.

However, after reading the latest reports and comments by CEO and managing director, everything looks good. They're predicting a NPAT for 6 months to be around $4.5 million...
That's more than their last year's full-year profit (although I did read something about a write-off, so last year's profit might have been better than what it showed.)

Their SP is under their NTA and the current buy-back adds value. I personally think that you can only gain from these if you bought into them now. (Although do some TA before making any decisions on entry and exit points.)

My one and only concern is that it relies heavily on the resource sector. (Yes, it has been positive for the last 5 or so years but will it continue? I really don't know but history shows that we are in for a commodity downturn in the next year or so... possibly after the US election.)

Good luck.