the one u could be missing, page-2

pe 6.3 div 10.7% positive outlook CEC Group is a vertically integrated construction and development company operating in North Queensland. The company is engaged in civil engineering and construction, supply of building and construction materials, and property development.

Last Price was $1.12.
Dividend is 12c fully franked, return 10.7 % + franking credits.
EPS is 17.8c, giving PE of 6.3

Recent Directors comments on outlook:
"We remain extremely positive about the future
of the region and the CEC Group and its core units.
We will be promoting this fact with an “Investor
Roadshow” in November 2005 to Brisbane, Sydney,
Melbourne and Canberra. "


North Queensland will look alot more attractive now as a tourist destination than Bali or other Asian countries.

The main reason for the very low price seems to be a lower than expected recent profit, primarily due to delays because of the current high level of activity in the area. Much of the reduced profit has not been lost, but can not be brought into the accounts until the current year.

CEG has recently gone ex-dividend, and with the recent market correction is now at bargain basement prices. It is very thinly traded, with a market cap of $47m. With increased investor interest from the roadshow, the share price should rise rapidly back to a more appropriate level. A PE of 10 would see the price at $1.78, over 50% above the current level.