My guessitimate has SSM looking at EPS of 6.2c in FY12 and...

My guessitimate has SSM looking at EPS of 6.2c in FY12 and hopefully 7.4c in FY13. That's an increase of 19%. Not exceptional but certainly acceptable. But for me the key financial metric is the PE. With SP at 40.5c it's on ratios of 6.5 & 5.5. These are exceptional but it's the macro that gives me confidence. SSM is possibly the only small cap (outside the mining service sector) that has BILLIONS of dollars of work booked-in. This come primarily from the NBN but also from work on mobile phone towers for the big phone companies. How much will be spent on 3G and $G infrastructure over next 5 years? A couple of billion at least i reckon. The NBN is about a $20 Billion spend and even a 10% share will see SSM reaping decent rewards. One could argue that telecommunication infrastructure is more certain than mining infrastructure. Many mining projects are promulgated, but lots have seen delays in signing-off the start of work. Current Labor govt have signed-off on the NBN and it will go ahead. 'Smart' electric meter installation is another contract that provides steady income for SSM... at least for next 18months.
So what's holding the SP down? I think mkt still wary of capability of new management, but they can only be an improvement on previous mob. Plus hard fought contracts in NBN sector have moderate margins. However, labour costs have peaked and will decline imo. I mean how much skill/training does one need to lay a cable? Let's say we get a 1.2c final div. That's 2.2c ffr for the year= 5.43% net= 7.7% gross. Not bad for a company that if it continues winning decent size contracts, could become a TO target possibly by its JV partner Lend Lease. I'm hoping we'll get back to 50c by 30 June. Keep a sharp lookout for news of contract wins... either by SSM or its rivals.