I'm thinking the same way Quickthinker. Some things that caught...

I'm thinking the same way Quickthinker.

Some things that caught my eye in the Annual report included the high percentage of insider holdings (48.5% including Directors, key employees, TPI and the Meretec owners).

Also, like you, the sheer volume of credit available to CMA is encouraging along with the attractive interest rates. It looks like they have considerable room to move if attractive acquisitions come along or Meretec plant construction is required as funding is already in place.

According to their Gearing Policy it appears that they still have a bit of head room to expand using debt vs. equity which is obviously good from a equity dilution perspective.

Given current share price (and using all other numbers from Annual Report) gearing is currently around 46% vs. the upper limit of their Gearing Policy of 55%. This means CMA Policy still allows for approx $24.5 million worth of debt funded expansion.

Looking through the acquisitions it appears that they are consolidating smaller recycling companies on very attractive P/E ratios if the numbers can be accurately extrapolated over a 12 month period (e.g. NZ recycling companies).

I assume that Southern Recycling contribution to group(160 million revenue and 256k loss) is an internal accounting treatment as opposed to a real segment result. Same with Photographic Waste possibly being more strategic than profitable. Other than these two, the acquisitions appear to STILL be EPS accreative even with the depressed CMA share price.

With NTA of 23.9c as at 30th June 2008 (maybe a little higher now with a few more months of profitable trading) there surely can't be too much more downside in the shareprice - especially if Congress pass this bailout bill over the next few days and things settle a bit.

Give it a few years and we may look back at these share prices with disbelief...

I'm continuing to buy... but keen for others thoughts on this.

Cheers