I have to thank Footsie for bringing this stock to my attention.
If history is anything to go by ie last year, ETC provided guidance, then upgraded it about 8 weeks before year end and then beat its upgrade.
Whether it can do this in FY09 will depend entirely on the timing of their contracts.
My understanding from the presentations is that the Chinese contract was not factored into the 48m FY09 forecast, so the 20m should be on top of that forecast or the Malaysian contract is experiencing some delays and the CHinese deal will make up the shortfall.
If the Malaysian contract is going to plan and they are confident that the Chinese contract will deliver earnings this year, then they have to update their guidance to the market as it is sure to be a material difference in earnings.
Either way, I am bemused by the muted price reaction. I can only assume we have flushed out some sellers and the company is not on the radar yet. I suspect with a reiteration of their guidance so late in the year will get a few people very interested.
Holding and very comfortable with where we are going. This could be my first ten bagger over 18 months.
Get into it guys. There arent very many opportunities like this one.
ETC Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
