I am in as well after a long period of observation, although I...

I am in as well after a long period of observation, although I can understand long term holders moving on out of frustration (been there done that).

Business is being priced at just over 2 times underlying EBITDA with improving business metrics. Interest expense will meaningfully reduce FY12/13 due to reductions in gearing and good operating cashflow.

I assume that COF is getting caught up in sector concerns re mining CAPEX falling off a cliff in FY13/14 as per the LYL management disclosure (approx 32% of the Geoservices business is mining related). The RBA has identified renewed housing and infrastructure as a replacement which if achieved will benefit COF. At the AGM Management (who impressed me) noted margin pressure in the Geoservices Business but saw opportunities as well.

The International Business is a good foil for Geoservices as it had demonstrated consistent and steady performance in unrelated markets.

This business on all my metrics is too cheap although potential headwinds must be acknowledged. A steady FY12/13 will make the current market cap seem ridiculous.

DYOR