Spotlight on NWE for a momentNWE are trading at a P.E multiple...

Spotlight on NWE for a moment

NWE are trading at a P.E multiple of x 15 (16 eps x 15 = $2.40)

280,000,000 shares on issue current share price $2.40

Sales Revenue

FY 2011 745 million
EBITDA 95 MILLION
EBIT 64 MILLION
NPAT 41 MILLION

EPS (basic) 16 cents
DPS cents 9 cent

Financial highlights
? Revenue of $745 million: 22% increase on FY10
? EBIT of $64.6 million: 12% increase on FY10
? Net Profit After Tax $41.2 million: 17% increase on FY10
? Successfully raised $76 million via an equity placement and share purchase plan
? Conservative Net debt / Equity position of 19.8%
? Cash balance $70.6 million
? Record order book of $2.0 billion (excludes current ECI projects and post FY12 Rio Tinto Iron Ore preferred contractor framework agreement projects)
? Achieved Return on Average Capital Employed of 29.6% ? Final dividend of 5 cents fully franked, totalling 9 cents for full financial year

If we were to compare companies just on NPAT this would be true of Allmine Group and why its a screaming buy!!!!

Allmine Group are projecting 16. 5 million NPAT (+ dividend????) for FY 2012 therefore if achieved we would be looking at a share price of approx 90c share if you calculate (6c EPS X 15 = .90 c share)

Also given the fact that they are winning more and more contracts (most recent was the 50 million deal announced last week) you can see where AZG might be in 1-2 years time....certainly not at 11c lets assume we achieved 12 million NPAT for FY12 and if we used a PE multiple of 12 we still have a shareprice of 48c share....easy to see its undervalued based on targets being met

Cheers
MMM