2010/2011 earnings, page-3

NT

In mid-May, ABN AMRO Morgans produced a short report on EMT Corporation which forecast EBITDA for FY10 of A$90M and for FY11 of A$98M. This corresponds to normalised earnings per share for those years of 20 cents and 22 cent.

They valued ETC at A$1.09 per share but had a lower price target of $0.71 to reflect execution risk.

The market is clearly waiting to see dollars in the bank from ETC's juicy contract with the Immigration Department of Malaysian (A$60-80M pa) or the China National Gas Tank Project (A$200M over 5 years) before it buys the ETC 'story'. That time looks nigh though, as the reporting season is upon us, and if ETC releases profit results that confirm its A$48M NPAT forecast then today's share price will look like a steal.

My view is that ETC at current levels looks very very attractive.