hello again Morley.Didn't know this co existed (it's so...

hello again Morley.
Didn't know this co existed (it's so small...no wonder!)

What I do know is that the Chairman and I studied Chem Eng at Auckland 40 years ago, so that alone makes him a good guy! If he hasn't changed, he's smart, down to earth and knows what's important and what's not. I think that's reflected in the turnaround/ concentration on core since his Chairmanship.

I actually think it's overvalued based on last half, even tho that was their best period ever. Little cashflow and profit. Balance shhet only viable due to the original founder converting debt to equity. P/S >1. Annual report tagged re going concern.

Given the new broom and their field they should be successful, but I think it is going to be a few years before they become sufficiently sound. At that time and if successful, they'd be a prime takeover target for a multinational engineering consultancy.

I'll put on the watch list waiting for better record and valuation. Too many risks and what-ifs for now.