profit up, dividend up, page-2

I believe ASL's result is the best surprise result so far in this reporting season.

It's a pretty illiquid share so its price moves well on good news and last night's result was very good news:

* eps of 6.8c for the half
* cashflow per share double the profit
* working capital debt reduced to zero
* 2c div (75%franked)
* nta of 58c
* profit margin and roe up to around 10%
* about $10m cash

They forecast the next half will be just as good, putting them on a p/e of around 4. Next half they will benefit hugely from a currency hedge set at 56c.

Ausdrill is a successful turnaround business serving a hot sector: gold and base metals. After their near-death experience, management is now frugal and determined to control borrowing and stay within their core area of expertise.

Cheers, Anne