looks cheap and undiscovered, page-2

Howdy James,

Yep definitely under the radar this one and as you say the earnings should deliver a low p.e for this half. When you look at the dramatic turnaround in earnings for Hughes and the old EDS from H1 FY 11 to the 1st half this year, it is clear both buinesses have been fine tuned/cleaned up for the reverse merger. Also sounds like a few new contracts are coming along to bolster revenue this half as well. Weather has been ok relative to last year. One reservation, I'm not sure what effect the strikes at BMA could have had? Depends on whether they had to down tools along with the mine employees, but I suspect they would have.

I am currently out having taken the ride from 2c exiting at 4.2c to wait and see whether some selling ensued..Seems to be treading water at this level for the moment but I reckon you are right, wouldn't take a lot to see it go higher. Tightly held with Hughes holding so many of the shares (good and bad) At last years AGM, RObert Hackett emphasised the reverse merger would be just the first stage of the evolution and they would be looking for further capital to reduce Hughes' position and open up the register to small cap funds..I guess this means they will post their results for FY12 and seek to tap the market, or Hughes could sell a block to a few insto's? Either way I think the results will come first and that should prompt a re-rate..Worth $80 million plus debt from where I am sitting.