STS has achieved a stellar 2008 result with EPS around 28c...

STS has achieved a stellar 2008 result with EPS around 28c normalised. The order book was confirmed over 200 million and activity was high, record levels for the company. In contact with the company they maintain this order book is continuing to be strong.

The govt. spoke yesterday on there plans to beef up infrastructure spending that will no doubt continue to help STS. The revenue streams STS generate are diverse and they are somewhat of a niche player.

Selling the UK business seems to have been a masterstroke and the added attention on Dubai will drive profits. Mining continues to be streong despite the fears of a global meltdown which seem a little over done. EPS may be around 35c for the year resulting in a PER of 5 and yield may be touching 10% at this level. I see minimal if any downside risk at these prices and have been topping up for the next leg up.