any interest on hc, page-3

Similar story. Bought some in december, but kept topping up all the way down to 80 cents. Still quite undervalued, in my opinion, but no guarantees about how much or when it's share price will increase further. Bell Potter has $1.25 target and I think the average analyst target is around $1.18. EHL will be a solid dividend stock with some share growth, unless something upsets earnings next year and after. Bell estimates a 1 cent increase in dividend each year.

The May guidance stated NPAT will be $67-70M (top end of consensus estimates at that time) and 20-25% earnings growth. This announcement obliterated analyst worries about lower earnings (they thought Queensland rains would hurt earnings). Yet, EHL continued to drop (with only a brief uptick) in spite of the guidance and most analyst changes back to "buy". Most mining services firms fell out of favour without logic from April-June, and most are now bouncing back (e.g. BKN).

EHL is looking stronger due to a few developments: (a) moving into contracts with major firms in Cdn oil sands, (b) working with reliable (i.e. pay their bills) customers in Indonesia, and (c) developing business in Chile (mostly copper mines, I think). An article earlier this year also explained how EHL changed employee incentives and responsibilities to minimize delinquent customers.

Annual results coming up this week, so we'll see whether the May guidance is accurate. As always, do your own research. These are just my opinions.