norfolk center stage in the fin review

The Fin review "Street Talk" Section center page has run a very telling article regarding "The Agressive Buying in Norfolk" by Citi & GS
Main Points in this article are
1. Heavy trading in a low profile small cap - raising eyebrows, especially due to Citi's role
2. The theory was that the companies 3 operating divisions could be split up, with the sum of the parts being greater than the whole. With particular attention to O'Donnell Griffin Division being worth just about as much as the whole company.
3.Private Equity firm Maui Capital is the largest Shareholder "and only recently fended off trade name Monadelphous Group"
4. "There is a view in the market that $1.80 would be an acceptable starting point for any talks"
5. "So when a broker starts bidding aggressively for stock, attention turned to corporate activity. Citi did 37.9 percent of the trades across Thursday, Friday and Monday compared to 13.9 percent share since January 31 according to Bloomberg."
6. "Sources close to Norfolk put recent trading down to renewed interest from institutional investors looking for stable earnings growth in the current climate"

Thats the main theme points of the article. What do i think?

1. This article (author) has knowledge on this company as it gives me the feel of a story that is unfolding and the Author has stuck to the facts. Nothing in this article ramps or strays of track.
2. Regarding O'Donnell Griffins value, this was a stand out in my due diligence and I totally agree with this. The case for this is very easily proven and shows Norfolk Group to be very cheap when looking at NFK through "Enterprise Value"
3. Re Monadelphous being fended off by Maui Capital - this is what I thought had happened, (no proof) but this is the first time I have seen any supporting commentary to my view. Maui is instrumental in this view as Norfolks CEO is also a director of Maui Capital and as such provides a unique relationship in support of the investor.
4. Norfolk is continuing to strengthen its balance sheet and increase the strength of its recurring revenues. This will attract the attention of Institutional investors (which as I have said in prior posts is something NFK shareholding is very light on) Norfolk is being well managed and groomed for much greater attention, than what has it previously experienced. In my view NFK management & Board are well on track.
5. The reference to $1.80 starting point. I underline "starting point" and also any new & positive news from this company, will see starting points above $2.10
6. Re Sources close to Norfolk; This is a standard type reply, so nothing can really be read into this.

Also Note;
PE averages amongst similar small cap mining services companies are averaging 14% or better NFK 13.8c EPS puts the price at $1.93 NFK currently has PE of 9.17, so lagging well behind.

NFK 50 day EMA has now moved up through the 100 & 200 day EMA very convincingly.

Hope this is helpful to those who may have missed this article today.