baby and bathwater, page-50

Disco, let's assume that RQL will achieve PBT forecasts of $16 million (I think it will be higher) although let's stick with guidance from management.

They still have $8 million in tax credits so will pay 30% tax on the remaining $8 million which equates to NPAT for 11/12 of $13.6 million.

$13.6 million divided by shares on issue of 247 million is EPS of 5.5c giving RQL a P/E ratio of 6.3 or an earnings yield of 15.9%

An earnings yield of nearly 16% for one of the best run companies in Australia.

Opportunities like this do not come about too frequently although that said who knows where the stock price is going in the short term? Nobody. Long term though I believe investors will be rewarded as the value of the company is more accurately reflected in the price of its shares.