Agree - this is a strong result that is yet to be full...

Agree - this is a strong result that is yet to be full appreciated by the market. At 25.5c, you are getting the following:

- Current P/E of 7.66x/earnings yield of 13%, based on a very clean earnings result (and strong underlying cashflow generation after adjusting for the prepayment of employee entitlements)
- FF dividend yield of 9.8% (12.7% grossed up)
- An MD who clearly knows how to run the business, even when confronted with fundamental industry change. High quality managers with significant skin in the game and a shareholder focus are very difficult to access at this kind of valuation. The MD has restructured the business exceptionally quickly and effectively, and despite the distraction of this process, has rapidly grown the Concept Engineering business (which should continue to be a key growth driver in 2019). Importantly also, they have also left a potentially lucrative training platform in place that can be scaled as required.
- When reading the MD's report, there appears to be good growth momentum across the business, so I suspect the recent contract loss announcement was largely a strategic decision to focus on more profitable contracts.
- I would expect this stock to continue to drift higher in the coming months as the market gets more comfortable with potential growth, and that you are investing in an owner/manager who knows both how to run a business and how to manage its capital base for the benefit of all shareholders.
- The alternative case is that the share price continues to track in the mid 20c level, in which case a privatisation could be on the cards. Either way, its not a bad place to put your money.