VRS is a very cheap buy. Its market cap. is little more than 6 months revenue. It pays a dividend of over 2% full franked. Last year it paid off $4.6 million of debt, and among other acquisitions, it paid $9 million in cash towards the full purchase price of $16 million for Elton Consulting. Anyone can see that the later two items will translate to profit in the future. It has low debt of $8 million, having paid around $70 million for acquisitions, which is remarkable in itself. In fact the debt is little more than the $5-6 million held in cash. I like the way it has repositioned itself, and the way it has expanded, grown (from $60 odd million revenue to $125 million) and diversified (Surveying, planning, telecommunications etc) while balancing the budget at almost zero. The company is in a very strong position. A market cap equivalent to the annual revenue would be a fairer value ie. around 34-35c.
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