I still hold this stock and while happy with the results and dividend, remain puzzled as to why the share price is not higher? It sells at a yield of around 9%ff , a P/E of 5, positive operating cashflow and low to average level of debt. It deserves to sell around 30 to 35 cents.
The only concerns I can find are the high shareholding levels of the Board, the big discount offered for DRP when the company does not appear to need the money, the lack of any coverage of the company by any sharebroker and the lack of institutional interest in the stock. I contacted the Co Secretary and asked if any brokers covered the company, but received no reply. The current MD is stepping down but this appears amicable with him remaining on the Board.
Appears to be a company run by and for the major owners, and they have little interest in talking the company up. This is both an opportunity and a frustration for us smaller shareholders.
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