Well a number of reasons....... * Return on equity is very good...

Well a number of reasons.......

* Return on equity is very good 27% +
* Both profit and equity have been growing steadily for years - 1st half NPAT up 18% and expected strong 2nd half.
* They pay a good dividend with a payout ration of about 70 %
* Balance Sheet is strong and they have been hinting at further acquisitions.
* They seem to be well managed and innovative in the way they approach the market
* and lastly I think they are well under valued. My valuation is currently $4.50 + if they have another good year and forecast a good outlook again that will be more like $5.50 +

The only negative which is also a positive is a major shareholder with 50 + % holding. It doesn't seem to be covered by any of the spruikers and so drifts around a bit. But in a few years time it will be worth more than it is today. In the mean time a good and growing dividend is a plus.

Jack