I get the feeling this won't be under the radar for too much...

I get the feeling this won't be under the radar for too much longer. It's rare to find a company that is this profitable (ROE/ROCE very high) coupled with such a low P/E and very strong cash flow generation.

Then comes their industry position. Great to see some input from someone involved with pharmacies above - I'd love to hear more. A friend and I did an informal survey across a few pharmacies before we bought in some months ago. I made a habit of having a quick chat with someone when I walked past a pharmacy. Lots' (Corum's E-health) anecdotal market share appeared to us to be very strong. Interestingly, although most liked the system, even the one fellow we came across who didn't like it still had no intention of changing. This is particularly impressive and adds strength to the view that this has consistent, annuity like income.

On another note, I understand the Chemist Warehouse uses Lots as well (correct me if I'm wrong). My discussions with another listed company suggests they are doing serious volumes. Any view on them Robo?

Re predator concerns, I wouldn't worry about getting a dud deal. I suspect Lujeta, who owns 58%, is not likely to be a seller any time soon. Lujeta is owned by Worley's co-founder Bill Paterson and from all accounts he is quite sharp. The appointment of Broomhead as CEO has been a masterstroke - he has turned this company around since 2009; paid off debt, took care of bank and legal issues (provisions now gone), cut expenses significantly etc etc. Hopefully he hangs around..

The question now becomes what next? They won't be paying tax due to significant acumulated losses so whilst dividends could be on the radar, they will be (at least initially) unfranked. With this sort of cash flow (now unencumbered as there are no debt repayments/financing costs) - provided it continues at current rates - there are a few different options for management.... any thoughts?