strong result but did nothing

Legend's NPAT ($6.7 million) released Monday puts it on a PE ratio of 9. The Cabac acquisition profits will be included in the 2007 results. Management are forecasting 15% earnings growth for 2007 (from the May prospectus when capital was raised at 70c). Based upon my calculations EBIT 2007 for the combined businesses should be $15.2 million. Add the 15% growth takes it to $17.5 million. NPAT should be $10.5 million plus $1.5 million growth. That puts LGD on a 2007 PE ratio of only 6.3. Total dividend for the year is 3c (fully franked).
A conservative re-rating of this company (say a PE ratio of 10) would indicate a valuation of $1.20
The company has recently become much more diversified geographically and the acquisition will also reduce product risk. Their website is www.legendmemory.com