peter_kk, page-2

AC

If you look at their operating margin it now resembles other industrials. It has moved from around 8% to between 11% and 12%. That is excellent.

It is very clear that the CEO has benchmarked against other industrials. He has retained a reasonable debt level. Again that is a good thing because it is far cheaper than equity (for NLX anyway).

What he has to do now is use that operating margin and the lever that debt to achieve a return above the cost of capital.

Given the new structure I am bullish and own. It is a turnaround stock and you will have to wait given the new organisational structure.

On my model I estimate that it will hit $0.78. That is if the economy stays boyant. It will move first move to 40c.

AC - three others that look undervalued on the basis of my model are AAC, AHS and BPC.