A pull back to $1.70 is a good buying oportunity here for investors. 2006/07 EPS should come in around 15c to 17c. The lower end being 15c at a PER of 15 suggests $2.25 will be fair value. Mid year results guidance should be out soon so will give an indication of where it is going and likely results, previously directors stated a NPBT of in excess of $4 mill. On a NBPT of $4 mill EPS will still come in at 7c so looks like solid result is assured. STS remains cash rich so an acquisition or increased dividend payout is not off the cards. Take this pullback as a chance to top up.
STS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
