I've been watching this one for a while and finally bought in...

I've been watching this one for a while and finally bought in today.

Under the radar report had this to say about it today:

GALE PACIFIC: RESEARCH TIP UPDATE - JULY 2017
Published: 13 Jul 2017 / 250
Shade cloth manufacturer

Gale has released no update since its half year results at the end of February, and the share price has been drifting from there until a few weeks ago when some buyers got interested and its stock spiked back up to 40c. We think that buyers have been reassured that there has not been any profit warning, and the odds have improved for a positive financial report in the upcoming results season.

From a fundamental basis, this was to be expected of a business with a stronger 2nd half in a growth phase, and we still think the results will impress. Other than commenting on the share price action, there has been no news. This is not a bad thing for a company to limit the number of market releases.

But each time you review a company’s statements you can find something new. Management’s commentary at the half year results about the outlook for the second half is remarkably positive for earnings, cash flow and the balance sheet, and if nothing has gone wrong, investors should be rewarded. A repeat of the 1 cent first half dividend would imply an unfranked 5% yield, and it may come in higher than that. A manufacturer exposed to overseas growth, able to supply from an increasingly efficient Chinese plant, with very sound fundamentals should be able to tell a good story.

American sales structures have been adjusted to drive growth, and the 2nd half represents as much as 70% of sales from there. Cash generation will be positive in the second half, leading to a reduction in net debt, and the share buyback will deliver earnings per share growth, such that FY17 EPS might reach almost 4 cents for a P/E ratio of around ten times