Fair comments Early1 and I'm happy to take your valuation...

Fair comments Early1 and I'm happy to take your valuation amounts.

I do think a PE of between 10 and 14 is a bit heavy though.

Given our small cap size, unsexy industry, lack of insto support and argueabally lack of appeal as a bolt on acquisition or merger, I think we are really in the 7 to 10 range.

The half yearlies are pretty tradesman like. A solid result in services, but we can do little to improve here growth wise though.

Home loans, a pretty decent effort to maintain slight forward momentum in the face of massive churning by the majors. This area really is a destroyer of ROE though.

Business loans is the area which has cost us dearly. We have now had two successive half year losses in this area...but, Tim is very obviously onto it and so I'm prepared to give him a further period to turn this around because it is a natural fit with the business dynamics.

I really am waiting on the "new products" to give us some forward impetus though.

As for the buy back...can anyone think of a better way of generating a ROE of around 20% or more on the funds deployed?

As to value, I'm working on a NPAT to members of $8m for a valuation of 42c to 59c