the only thoughts I can offer up are three fold with net debt in...

the only thoughts I can offer up are three fold

with net debt in the area of $58m and NPAT of $4m it leaves it stranded should contracts rapidly dry up - countering that is the rapid infrastructure spend which is just about to come on line from the govt which should drive some business and provide some floor domestically and in NZ

it has some business in the Pilbarra so is linked in somewhat with commodities - I wouldn't think this is reason for such a price fall although perception can be some peoples realities

it has undertaken a rapid expansion globally (opening offices in every corner of the globe) at precisely the wrong time (at hindsight grand) and could be accused of losing some focus on its knitting.

lastly this was a big favourite of a number of small cap fund mgrs which would have had a high level of redemptions over the last 3-6 months - redemptions mean the funds have to divest their assets and this a fairly low volume stock - goodbye NFK.

It's not a bad buy at these levels but watch it very carefully with relation to lose of or stalling of existing contracts (state the obvious)

On the whole