less than 4x fy14 pe with growth potential

Summary I did for a friend and thought I might as well post here in case anyone is interested/wants to critique:

"DGX is getting too cheap at these prices I reckon and I have taken a position.

Property developer and construction company (ultimately I am hoping it can be compared in the same breath as Finbar - FRI). Historically a dog but they have finally found some stability and are guiding to a FY14 NPAT of around $4.2m - of which 2nd half is 2.3m (this are my figures extrapolating from their actual guidance of FY14 EBIT of $7m). That is EPS
of 0.9c (with 2nd half, benefiting from full 6 months of reduced debt from their capital raising a year ago - of 0.5c). Order book for FY15 and FY16 is shaping up well enough that this kind of profit can be built
on and ultimately dividends restored (a fair way down the track admittedly).

At current price it only has a market cap of $15m with only $6m in project related debt (and net cash overall). That said it only has a bit over $15m in book value (as at end FY14) due to its torrid time during GFC when had stock listed at book values that turned out to be way too high.

Legacy issues associated with having to flog old apartment stock at a discount to book value due to GFC is now gone. They seem to be taking a more conservative approach to their property development, only building once 90-100% are already sold with recent projects. They are also developing some apartments to be run by Quest to provide some recurring
earnings.

You would also think they would benefit from the headlines today re: CFMEU in WA has agreed to 20% pay cuts from the crazy wage levels construction workers were on over there - has to help margins.

Enough liquidity in the stock to enter/exit ok.

I reckon there is a nice base fundamentally and technically at around 3-3.3c and has the potential to double from here in the next 12 months without having to do too much other than instil market confidence that it can meet its guidance and show a period of stability."