hi ormond, this one is very undervalued,order book in FY2011 if...

hi ormond,

this one is very undervalued,
order book in FY2011 if arnd 174 and srnd 150 m in FY2012 , which is slightly less than FY10 revenue (arnd 182). So any new contract wins should add a boost. Seems like they have good government partnerships.
Excellent ROE , 48.3 ROE on FY10 equity, that is excellent, amongst the best ROE's on the asx.
FY11 ROE assuming no earnings growth and no equity raising the ROe for next year will be 41
barring a complete global meltdown, we shld see some EPS growth
So if margins decrease due to increased competition , and i assume a 10% decrease in profit ( margin of safety) this is still at a discount to its intrinsic valuation IMO

My assumptions : at a 12% discount rate even if earnings don't grow and stay the same at .15 cents , this one is still undervalued IMO
On a DCF valuation, again undervalued

last 4 years , and thru the GFC, earnings and NPAt have grown.
i like this one and 1.20 IMO is a great price!
good luck