Approx. $30mil NPAT. Assuming 2006 MIS sales of $60mil and 50%...

Approx. $30mil NPAT.
Assuming 2006 MIS sales of $60mil and 50% recognised in 2006 year.

Despite an extremely attractive p/e with the potential 100% increase in NPAT, the main attraction to this stock is the likelyhood of a takeover in the near future.

Futuris (through ITF) well renowned for their acquisition growth strategy has been using the 3% creep provisions to the fullest every six months after initially acquiring it's substantial holding. The CEO of Futuris Les Wosniczka was appointed on the FEA board after they acquired an interest in FEA. Why would Les be interested in being on the board of little old FEA?? The Futuris share placement in late may raises further suspicions + speculation that they have been in negotiations with Anythony Seymore (Founder & second largest shareholder).

Futuris are mopping up the industry. The takeover is a matter of when not if... the trick is to be holding when the bid comes. I feel it will come before their Prelim Final Report in mid August, before the coy becomes too expensive. They've moved on taking the remainder of ITF, FEA is next.

If Futuris wants a full takeover it will come down to price negotiations with Seymore and Perpetual, as they greater than 10% and can't be forcefully cleaned out. Highly likely the takeover bid will be over a $1.

All IMHO of course.