shorters cashflow is what counts n its v high, page-4

With all these mining engineering coys u need to look at cash flow per share rathe than EPS because they all takeover other businesses , and so continuously have to depreciate and amortize

We have cash flow of 99cents per share on 330mill shares, thus generating close to 330mill bucks in cash

obviuosly the equipment and goodwill needs to be expensed and amortized and new equipment purchased to replace old etc, but as long as cash flows are very high, that can easily be done;

As far as debt goes, i believe i see enough cash in the bank of 300 odd mill plus net receivables of another 200 odd. Thus we have 500mill in liquidity. All the debt is 800 odd mill and the short term debt is 500 which we have in the bank

I dont know, the ONLY thing i can see is that net margins are lower than others

From the financials i see that this busniness generates massive cash flows, however it is capital (CAPEX) intensive which sees that most cash that is retained is re-invested back into the business for operations and growth.

I suspect that they take-over other little businesses and so they need to amortize those businesses goodwill. If thats not the case, i clearly see that theres a lot of CAPEX and thus retained earnings are continously re-invested to grow the biz.

theres plenny of cash in the bank tho, and the re-investment of retained earnings is yielding an ROE of 13.6% , but more importantly a return on capital (ROC) of 12% (which is GOOD)

So the business WORKS and yields adequate ROE and more importantly ROC (which is a better measure because it is the return on equity+debt which uses cash-flow)!

ROE calculation is based on EPS in commsec, not cash-flow, so ROC is better and 12% is GOOD

Youre getting 12% return plus divvy on equity plus debt invested; You have plenty of liquid cash; EPS wont even be affected by such a small pre-tax revenue write-down (remember they make 6billion nearly in revenue)

Whats the prob??

again what have i missed??

PE is LOW , and about 5 if u use cash flow!