Recent update sez NPAT for 2HFY13 will be about 0.9million. Order book of 168m amd cash balance of 2.7m. Debt level unknown. So if revs and margins plateau earnings for FY14 will be bit under 2million. redundancy costs are also hurting. With SP at 33c = MktCap of 21m. Hence Sitting on fwd PE of 11.6. Still on the high side for such a small cap that can't reduce fixed overheads any lower and desparately needs larger contracts. STS does some specialised wk which is in moderate demdand. So not inconceivable a couple of goodish wins will be forthcoming. But remains highish risk until order book reaches 200m. Is it worth a punt at 33c? Not for me... yet, but if PE dips below 7 I'm likely to have a punt assuming i have spare cash,
STS Price at posting:
33.0¢ Sentiment: Hold Disclosure: Not Held
