I listened to video presentation and learnt plenty. 1st third...

I listened to video presentation and learnt plenty. 1st third describes how SWK's decision to focus on the specialised niche of UG core drilling has seen firm become the 'least affected' by exploration downturn. Middle third gave me a much clearer picture of the distinct CA SWK holds via its more advanced machines which offer more versatility than the competition. 5 yr target is to 'double prod/man hr'. Labour is 70% of cost base. Improvements in 'core extraction' have seen prod gains of 35%. Automation provides another 10%. UG rod handling system being introduced as i write. Final 3rd describes the 'awful macro' of FY13 and similar expected for FY14. Yet SWK still performing well. FY14 will see rev drop by 15% but rebound expected in FY15. Focus remains on EPS and buyback will continue. 25% of rev is converted into operating cashflow and SWK will have 'free cash' this FY. Committed to being open and transparent re ARPOR. SWK have invested in new technology that uses X-ray tech to produce mineral analysis at the coal face.... a first of its kind. This will provide opening to re-enter surface drilling. All-in-all it was re-assuring to hear that despite mining downturn SWK will emerge with clear CA over their peers. BUY at/below 35c IMO with a goal to hold 12-24 months minimum. Divs will still be paid along with franking credits.