I have owned a lot of BSA a number of times in past 7 years. It...

I have owned a lot of BSA a number of times in past 7 years. It always seems to provide trading opportunities. I held some 1.5m shares until selling following their announcement of FY2010 results. I sold in the 25-27 cent range. It proved a premature sell with stock then rising above 30 cents. I too thought the stock cheap, however I also became concerned that they had won a very large contract for the new St John of God hospital Perth. The stock rallied on the news, but I saw this as a potential future problem. I live in perth and have seen many contracting companies come undone by the booming WA market. They often underestimate costs and get caught in costly overruns. I have no idea how the contract is structured or performing. More recently the bad news on what is widely regarded as Australia's greatest contracting company, Leighton, gives us all a reminder of how hard it can be. Whilst BSA has a sound balance sheet, it is not large enough to weather a major overrun on this contract. therefore feel that a high risk premium warranted on the stock.