Ann: Managing Director's Presentation , page-3

S1mon... u read my mind. I want exposure to mining industry but not via mines themselve (as i fear slump in commodity prices apart from precious metals), not via mining contractors building huge infrastructure (too many projects have cost blowouts and end up losing cash). I seek a company that provides capital goods and MUST also provide consumerbles. The former are exc providers of large chunks of revenue and repay company's investment in manufacturing... but i also insist the company has a regular income stream. This can come from long maintance contracts or sales of essential consumerbles. LDW has a 40:60 split with consumerbles being the largest segment. Hence, at first viewing i liked the company and it ticks several boxes. What is preventing me from buying around the $4.80 level is:
1) LWD has a significant presence in many overseas countries. The high AUD is a strong negative.
2) The mkt has 'discovered' LWD and share (imo) is fully priced. The chairman's speech forecast that next years revenuse/earnings will match the year just ended. With 44c EPS that's a PE of 11. I require PE below 9.
3) Divs are 45% of earnings and likely to remain at this level for next 12 months. 20c/shareffr equates to 4%+fr. credits=5.7%. I require min of 10%.

In summary i like company in many aspects. However, at $4.80 it's too expensive for me. I can buy better elewhere. A final concern is ultra-low liquidty. Often less than 10,000 shares traded/day.