IMHO SKE is being undervalued by the market. It appears to be valued as a pure mining services company. And it's true that it does have that exposure. However it is more than that.
Currently trading on a PE of less than 10 and a div yield of 7% ff.
I've been impressed that the "new" management team have developed new and diverse strings to the bow through strategic acquisitions that were begun before the mining downturn took hold. They have been largely funded through debt which has the obvious impact of interest charges on costs but they seem good quality acquisitions, which is a good reason to increase debt.
At the current price I figure all of the negatives are built in. The downside risk to up upside potential I believe is in the investors favour.
Let me make it clear that I have no faith in fund managers - but I think it is interesting to point out that AMP became a SKE Substantial shareholder on the 14th of July with 5% and increased the holding to 6.08% by the 16th of July. I'm not sure whether to be pleased or scared that they agree with my view of SKE. They rarely ring a bell when a share reaches a price where it is very good value for money.
Just my humble opinion.
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Currently unlisted public company.