Hi Stayer, my view is on NFK is a simple one - a bit lengthy...

Hi Stayer, my view is on NFK is a simple one - a bit lengthy though;

1.They have a very consistant and conservative Board and Management team who do have deep experience in all aspects and have a very good record at providing no nonsense consistant results. They give me the confidence that they are building a very solid base.
2. Continuing to build higher levels of recurring revenues
3. NFK are the dominant player collectively in there business sectors.
4. Excellent ROE approx. 25 and consistant.
5. Solid free/positive Cash flows & continuing to strengthen.
6. Net cash positive. (plenty of leverage & undemanding balance sheet)
7. Cash on Balance sheet is growing strongly year on year.
8. Solid & Consistant Growth in top line revenues (pushing 1bl), EPS & dividends.
9. NFK continues to build on their very high quality client base, consistently winning sizeable contracts, with particular note to cross overs between ODG & Haden. NFK thru ODG is very well positioned for the huge upswing in mining services sector and in particular the rail & associated electrical systems, signalling etc to which Norfolk are in the prime position. It should be noted here that Norfolk as a Industrial/mining services company are positioned in such a way that the large capex spend by the miners is yet to roll out contracts for the segments that ODG & Haden operate in, so expect this wave to come slightly later than companies such as MND, IMD or SDM or NWH etc. Norfolk are also strongly positioned outside the mining sector which gives considerable comfort to the longer term outlook.

Also
1. Margin expansion is again evident in half year results released last November.
2. Share price is trading well below (35 - 45 %) it's 2012 Core Intrinsic Value which I range from $1.75 to $2.10 under current numbers.
3. NFK's share price has now put in a considerable base at these levels and is looking to be moving to a breakout (I am not a chartist) 60 DAy EMA moving up toward the 100 day EMA for the first time since it crossed downward in September 2011.
3. Substantial Tax refund & Credit pending - not reflected in current share price.
4. The last series of contract wins early December11 (totalling approx.. 250million) has not been reflected in the current price.
5. Perpetual have 15% stake and paid between $1.05 (approx.) and into the mid to late $1.20's with the obvious 6.6% at $1.10 a month ago. This supports & underpins the current base.
6. Maui Capital 20% Holder have a very good track record and well positioned.
7. Fin Review (Wed 29th Feb 12) has referred to NFK as cheap and a private equity target siting their undemanding balance sheet - net cash and dominant position and at 170ml-ish Market Cap, is a great target size, that would benefit from a Private Equity deal. This confirms to me that Perpetual have positioned themselves along side Maui in readiness for such an event. Perpetuals position is strong and telling. They have done their Due Diligence and have moved on this. But of course this is my opinion and boarders at this point on speculation, but the numbers are there to fall back on.