brandrill announces 82percent profit increase , page-6

Taking into account the company has diluted shareholder value by 11.8% in issuing 45,000,000 shares at 25c.

Total shares on issue 425,413,103 (Not fully diluted.... I don't think).

Return on Capital Employed:
2008 : 27.28%
2007 : 27.76%
2006 : 22.03%

So the company appears to be getting a good return on the capital they are using.

Now lets use the same calculation up against one of it's peers, Ausdrill:

2008 : 17.98%

It may appear that Ausdrill does not use its invested capital quite as wisely as Brandrill.

Return on Equity : 17.74%

Ausdrills:

Return on Equity (Adjusted for dividends) : 7.31%

Brandrills P/E ratio, for those that think P/E means anything:

EPS: 2.59 (Due to dilution of shareholder value)
P/E: 8.69

Ausdrills P/E: 10.08

So the the price needs to adjust to 27.5c to match Ausdrill P/E ratio.

Its a pity management has done a great job at destroying shareholder value over the years as the company appears to be running a lot more efficiently than Ausdrill.

Unfortunately the only way management may be able to restore shareholder value is by wasting capital with an on market buy-back.

I cannot see the share price rising too much higher than 30c and hope for a T/over bid early next year.

Regards.