catalyst for sp movement, page-2

There's no reports due until the end of August. There could be unexpected announcements though.

Profit outperformance, further debt reduction, and a return to paying dividends would boost the SP. Also an improvement in the auto industry outlook would help, but that again is related to profit.

The last half yearly had 5.5m after tax profit. If we were to make that figure regularly, we'd have $11m net profit PA. That would put us on a PE of 3.

However net profit from continuing operations for the half was $3.9m, putting us on a PE of 4.2.

I expect debt reduction plus a return to dividends would move us up to a more realistic PE multiple, like 5-8. Then an increase in profit is what's needed to boost the SP more.

But the previous period's results were positively skewed by storm damage, so even a stable result could be seem as positive.

So in summary: lots of profit, leading to debt reduction, leading to dividends.

At the current rate of profit, it would take until about June 2012 for the debt to hit zero, or Q4 2011 for the debt to hit a low amount allowing for dividend payment.