One of the qualitative factors i use in my analysis is: 'Has the...

One of the qualitative factors i use in my analysis is: 'Has the company looked into the abyss'? I don't know all the details but starting in April 2007, EHL plunged from $2.00 to below 16c across a 20 month period!! Now that's a collapse by any standard. Research shows that management/companies that have faced risk of bankruptcy are much more likely to avoid a repetition. The experience is searing and seldom forgotten. Hence, EHL fits this criteria. I also like the macro. Demand for rental of heavy equipment is strong and with utilisation in 84-88% range... Hence the cash keeps flowing-in. Organic growth is EHl's methodology. I am a bit concerned at how company continues to keep spending... but 2 things provide solace. About half the recent spend is on barely used equipment sourced cheaply from S.Africa. i alays like a bargain. In addition 2HFY11 has seen the AUD at its strongest in history which greatly benefits purchases made in USD.

Management have stated 2hFY11 will be 'slightly down on 1HFY11'. This is 2 good consectutive peiods and forecast for FY12 is certainly positive from the CEO. I want a good div stream. If we can get 10-12c (50% fr) in FY12 then that's a reasonable return on a stk i bought earlier today for 99.5c. Chuck-in EPS growth of about 12-20% and its a decent proposition imo.