From Eco Investor - Apr 10Analyzing the stocks on a share value...

From Eco Investor - Apr 10


Analyzing the stocks on a share value basis (see
chart) shows that the most promising looking of these
stocks is Willmott Forests (ASX: WFL).
The company has mostly good news. Its interim
profit more than doubled to $9.5 million, and its interim
dividend was maintained at 2 cents per share. This was
despite a relatively small 9 per cent fall in revenue to
$40.1 million. The company has a net asset backing of
$1.13 per share, yet is trading at only 38.5 cents per
share. Likewise, its half year net profit of 10.2 cents per
share if annualized gives it a low forward price/ earnings
(PE) ratio of 1.2 times. Total liabilities also fell
over the 12 months, from $252 million to $183 million,
and net assets rose by $46 million to $161 million.
The numbers look good and the company has shareholder
support with a $20.5 million fully underwritten
capital raising last November at 45 and 40 cents per
share that had a 91 per cent take up rate.
Broker Veritas has a Buy recommendation on WFL
and says it is the standout in the Forestry MIS sector,
supported by our valuation, which is a blended DCF
and asset valuation methodology... Our land valuation
component is carried at historical cost, which we believe
is significantly below replacement value. Our
Target Price remains at $0.60.