I bought up today with view that BIS is way under valued.
Company valued at 215m shares x 0.175=$38m
It is a volume dependent business driven by resource sector.
Took a massive volume hit in GFC, but must be returning toward past performance as resources boom again. In 2009 peak half year earned 18.4cps on 143m shares= 12cps in 6 months on todays number of shares.Say it gets to only half peak earnings, that means its now valued at 3x earnings.
Cashflow last year 14m, with poor sales, valuing at that poor time at 2.7 x cashflow.
Other plusses not recognised:
*much less debt now
*rid of dog (ATlas steel distribution)which buried the performance of the star that is left
In my view this co will be recognised when the 6mo and full year results are out for 2010/11.
Refer to their presentation recently.
Add to My Watchlist
What is My Watchlist?
