I've recently started looking at STS. On fundamentals, and after...

I've recently started looking at STS. On fundamentals, and after dilution to 64m shares, STS looks to be undervalued by most normal measures (other than Price/NTA where it is near 1) (see below). To estimate the forward yield of the stock I have reduced the STSs div forecast by 20%. Historically, STS appear to be in the habit of overestimating eps and divs by around 10%. After this adjustment, it looks like the dividend yield is 8.2% in 2010 and 10.4% in 2011.

All up, it seems like a good buy on fundamentals and outlook. I am not familiar with the management of the company or broader issues that may place downward pressure on the share price. Does anyone have (real not ramping) comments on the outlook of the company?

Cheers

Share price 0.86

All in '000
Total shares outstanding 63,884
Cash 1,400
Receivables 70,000
Inventory 18,500
Other current assets 300
Current assets 90,000
Total assets 140,000
Intangible assets 16,200
Payables 48,000
Current liabilities 48,000
Non-current liabilities 23,501
Total liabilities 71,501

Value of minority interests -
value of preferred shares -

EBITDA 16,400
EBIT 9,250
Earnings attributable to members 8,907

Current ratio 1.88
Quick ratio 1.87
Debt/Asset ratio 0.51

Market capitalisation 54,940
Enterprise Value 55,041

Enterprise multiple (EV/EBIT) 5.95
Enterprise multiple (EV/EBITDA) 3.36

PER 5.94
NTA per share 0.82
EPS 0.145

div per share 2010 0.088462369
div per share 2011 0.111539509
div surprise (ds) -20%
ds adjusted div 2010 0.071
ds adjusted div 2011 0.089
ds yield 2010 8.2%
ds yeild 2011 10.4%