The margin moving forward will probably be highly dependant on...

The margin moving forward will probably be highly dependant on pricing they set/get for the high end gold detectors. Assuming they are still sitting on inventory and the market is still soft (both of which seem to be true), margin could improve a little and probably should be well above 23% which is probably the result of dumping inventory at fire sale prices.

If you look at the past, margin was 31% in 2009 (the year prior to the gold boom), 41% in 2010, 40% in 2011 and 42% in 2012. There will probably be some recovery in the coming FY based on past data but it depends on how hard they need to clear inventory. Certainly should not be less than 25% you would think and might edge up closer to 30%.

Assuming FY15 sees some recovery in the markets and inventory gets cleared, they should be in much better shape for FY16. I doubt the share price will do much at all in the next 6-12 months and will probably never see $2 again. Worth holding though as they pay a dividend and are likely to remain profitable (though how much in the “gold” question