no brainer???

This looks like a no brainer to me at current valuation and strength of balance sheet?

There is no balance sheet risk (no debt, lots of cash) and the stock is now trading at:

- a trailing p/e multiple of 5.5x
- a forward p/e multiple of around 5.2x; and
- a trailing EBIT multiple of 2.8x

In addition, the dividend yield is around 4% to 4.5% at current share price- fully franked

These fundamentals are obviously the result of Forge's business being highly sensitive to an economic downturn- but surely at the multiples its trading at- the downside risk at the current share price must be small relative to the upside potential if America resolves the fiscal cliff and continue with quantiative easing?

Main question mark in my opinion is the new management team which needs to prove themselves. How much of this is a risk in your view?