Found this company while researching a few weeks ago, ran my...

Found this company while researching a few weeks ago, ran my ruler over it, ran the metrics through my mysterious valuation spreadsheets and decided it was just the sort of ugly duckling I love! A good company, in an out of favour sector, ignored by the market and flying under the radar.

Even on my very conservative DFCF calculations its cheap, add to that debt free, plenty of cash and an eye for diversification from accomplished management and it was a mix I couldnt resist.

SXE could also benefit from the shakeup in head contractors for the NBN Co in northern WA and the NT, given its move into this segment of the industry.

I dont expect much capital growth in the short to medium term in any companies in this sector regardless of how good they are, but in the long term quality will out and I think there is significant potential with little downside.