I keep trying to get in... damn market maker is on holidays... I...

I keep trying to get in... damn market maker is on holidays... I think it is a good buy.

(hehe- good buy that is.. NOT good bye!)

As for why the price is dropping - I can't answer for people's day to day machinations.

ROTA of 100m / 200m TA = 50% - excellent
Debt - 160m (about 30% unsecured) with 160m free cash = 0 - safety
NPAT revised guidance of 100m. - ok
Strong Management, Experience - good
Good Historic Growth - good
Interest cover - 25-30x EBIT - excellent
Strong cash flows - excellent
Liquidity of stock - ok

So, the question an investor needs to answer for this stock, is how much are you willing to pay for a vehicle that will bring you 100m p.a., with good growth prospects in the medium-long term. If that answer is 525m - 685m or less (depending on how you treat the cash), its a buy. If you subtract the cash from the market cap, I would treat it as a screaming buy.

I would call this company somewhere between 40-50% undervalued. Subtract whatever risk premium you see fit.

I have not been able to find much better, and am trying to enter.