compelling value

At these levels BGL offers compelling value. On my personal forcasts for the 10/11 period I have BGL on an EV/EBITDA multiple of under 2.6 and a PER multiple of under 6.5! This compares with a peer average (MAQ, IIN, AMM, TPM, TLS) of 6 and 11 respectively. Sure it may be reasonable to expect BGL to trade at some degree of discount to larger sector peers given product concentration and market cap but surely not a discount of this significant level. Fantastic buying at these prices!!! Towards the end of the 10/11 period, all things being equal and provided sector growth rates are maintained, expect sector valuations to be rerated towards "historical year" (i.e. 10/11) averages of around 7.5 for EV/EBITDA and 13+ for PER (current figures for the 09/10 period). If BGL can achieve solid earnings growth and post EPS in my target range of 2.2 to 2.7 cps for the year, and commence paying a dividend (albeit at a lower payout ratio than the sector average) then surely the share price will rerate to +.25. Even on a discounted historical PER of 10 this time next year BGL should be trading at + .25cps. At current prices you are looking at almost a 50% return including dividends in 12 months!!!!