dubai: onward and upward

Yesterday, 2nd Dubai JV contract of $50m following October one of $40m. FY2006 EBIT of $29m. Expected FY2007 EBIT of $38-$41m. With more Dubai JV successes expected: FY2008 EBIT is looking good! (Expected FY2008 earnings impact of existing two contracts alone is $5m.) Current PE is just over 15. Prospective FY2008 PE of just over 13 BEFORE impact of latest contract and any more to come. And a well covered fully franked div! No wonder the price passed through $3.00 today. (up from $1.50 at start of current FY) Two more similar contracts and $3.50 looks reasonable. And all of this ignores steady ongoing growth in the Australian business especially with the Heyday acquisition last September.