why the drop?, page-10

IMD has changed significantly over past 9 months. Some decisions have eroded margins and will hinder earnings growth over the next 12 months. Others are beneficial and will promote earnings over next 12 months. Over a short period staff numbers have leapt considerably, and are a big big cost to company. Debt also substantially increased to about 48m. Lot depending on how well the expansion into drilling in US gas&oil fields pans out. It's a big mkt but takes time to penetrate. I'm willing to buy when PE hits 8.0-8.8 range. Have reduced my EPS by some 7.5% for 2HFY12.... effectively knocking 9c off my buy price. Cashflow remains ok. May match 1H but profits will be down. Rate of growth in divs will slow over next 2 halves and then should increase staedily thereafter. Lot depends on POG, POO and how willing banks are willing to fund early stage explorers/miners. Higher risk means one should only be prepared to re-enter at a SP with significant 'safety margin' is my strategy.
Pisces i sold at 2.20 after buying very cheaply below 1.60. I was nervous re world economy and thought europe would have imploded back in august/septemeber. You did very well to get over 3 bucks!
Elz just having a dig re collapse to 25c. But 1.80 is probable, 1.70 possible and 1.60 not inconceivable. I don't see 1.50 being breached. For that to happen BHP will be $20.!!