Cashflow is a better indicator than profit which is affected by...

Cashflow is a better indicator than profit which is affected by non cash costs such as writedowns, depreciation and amortisation.

However CHL also stacks up very well on profit. it's interim profit was 1.44M for 6 months which amounts to 1.1cps, or the equivalent of 2.2cps for a full year (conservative because the directors have foreshadowed earnings growth in H2.

This places the stock at 19.5c on a P/E of 8.9.....CHEAP!!!!

Try find a mining services provider with a P/E under 20, let alone under 10. This one has some catch-up to do to the rest of the field after 2 years of accounting losses in 2004/05. But it stacks up very well on cash generation and profitability.