Ann: Major Contract to Perform Asbestos Consultancy Services-HRL.AX, page-5

If you write up a list of Pro's and Con's for HRL, everything seems weighted to the good things when I do this..

Pros:

• Very tight register Management and Board close to 50%
• Loan facilities if needed (but undrawn)
• Exposure and contracts in current high value projects (Mr Fluffy etc)
• Contracts with Governments and big organisations in multiple states and countries.
• Roll-up model to some extent, but early stages where arguably the most value is obtained.
• In a niche, perhaps boring but definitely growing sector. Both the drug screening and asbestos.
• Both key markets will no doubt grow in coming years as compliance and legislation increases
• Even at early stages bringing in real cash, nearing cash flow positive even after acquisitions and new offices
• Climate changes and natural disaster mean more tests needed.. more business

Negatives:

• Time until big profits - maybe to long for some.
• Legislative risk - maybe things will become even more onerous and expensive.
• Competition and general economic activity.
• Anyone help with others?  

$17m Market Cap,  looking at $10m revenue this YTD  and growing nicely.

I'm puzzled as to the lack of buying interest when this does look like it is on the way to a real and profitable business group.  Reminds me of MNF back 10 years ago, my first multi-multi-bagger that just never stopped going up. Un-sexy space at the time but astute management just did their thing, quietly in the background and then one day, the market realised and management were running (and owned a big chunk of) a business worth hundreds of millions of dollars.