what's happening at norfolk?, page-2

I've stumbled across this stock today and trying to work out what's up with its shareprice.

Looking at 2012 annual report results I saw the following:

1) Equity per share - $0.77
2) Payout ratio - 18%
3) Return on equity averaged over 2 years - 39%
4) Return on equity according to macroaxis - 29.86%
5) Price to earnings ratio - 4.67
6) Debt to equity ratio - 0.22

I noticed the half year results released November 2012 indicated that equivalent earnings were down 50% on the previous year. Still, it's making a profit and minimal debt.

If I use a low ROE of 18% and a conservative RR of 14% I still get a valuation of $1.19.

Is the share price at a significant discount to its actual value or am i missing something very significant??

PS. probably won't buy this stock but wanting to learn as much as possible about getting my valuations roughly on target.