undervalued....im in...., page-2

Looking at the fundamentals: the return on equity is up there at buffet zone territory. A 10% increase in earnings will mean that current ROE at 13.5% will get to 15%, and hence the ROE is trending up yr on yr as you can see after it fell a cple years back because they basically DOUBLED the EQUITY in '07

Note though that the companys theyve taken over are companys with lower ROEs yet greater earnings certainty - e.g the property management businesses in the US. So those are defensive earnings

Return on their debt+equity (a better measure bcoz they have 50% long term debt/equity is 10% and trending back towards the average BEFORE the additional debt ; NOTE: 8% is GOOD.

With all the acquisitions and the additional equity+debt, the fundamentals are still buffet style and trending up slowly since the mass equity and debt raisings a cple years back to expand

Again, they may have long term debt at 50% or so, but the CERTAINTY of EARNINGS is far greater now in property management etc added in the mix than with engineering

So its got growth earnings and defensive earnings too, and the fundamentals are GOOD

So its a gtreat company IMO

If theres a recovery globally in the next year then work will increase in the rngineering front and mnore contracts obviously won. Mining is going bonkers atm. With a recovery, dont be surprised if earnings outperform as per usual again

they always outperform when reporting