market update, page-20

First to admit that I'm not an expert in this industry. I was attracted to BSA on the basis of the yield, and the very low p/e. Granted, you dont buy a share with a p/e of 4 in a difficult industry and think you have a screaming bargain. You think that there might be an opportunity here and consider what your margin of safety is in case you're wrong.

My analysis focuses on how sustainable the dividend yield is, how much debt etc. As I commented in my previous post, they have re-paid a significant portion of debt in the current year and still have plenty of operating cash to maintain the dividend payment. So yes, I am happy to wait and take the chance that management will turn it around! Otherwise I would not have bought it!