nice price rebound - strong fundamentals

SKE rebounded from $2.04 to $3.05 (33%)

How much more left?

P/E still only 11 - with forecasted EPS growth of 10% (2013/14) – before the acquisition of Broadsword Marine.

Let’s break down the fundamentals

Cost = $48.8 million (initial)
Interest = $2.44 million pa (5%pa)
FY14 EBITDA is forecast to be approximately $17 million ($10 million Net Profit after debt cost – approx.)
FY13 EBITDA ~$14 million on total revenue of ~$60 million or 23.3% margin

Financial year 12/13
Current Share Price $3.05
Net Profit $65,000,000
EPS forecast 27
Current P/E 11.04

Financial year 2013/14
Share Price $3.85 (if based on current P/E of 11)
Net Profit $71,500,000 + $10,000,000 (broadsword) = $81,500,000
EPS forecast 35c
Current P/E 8.71

PLUS - Fully franked dividend 4.7% pa

Find a better stock in this sector in this economy!