trading at a pe of 2.5 and an 9% yeild, page-26

Hi everyone,

I would really like some more posts on here. This stock has been punished. I know nearly all MS stocks have taken a beating but this one more than usual.

with a P/E of around 1.5 i keep wondering about it. I am weary of the Buffet 'roach' cigar butt theory but the following is enticing about this stock:

Upsides:
- Strong history (even prior to listing) of stable (although no stellar) earnings.
- Reasonable debt levels.
- Coal price slowly rising again, and long term prospects of the coal industry.
- Book value looks appealing.

Downsides:
What is worrying about this company is the lack of disclosure about their forward order book. They used to publish that information a couple of years ago but in their latest announcement to the market all that was in their was the reduction in their revenue and then a statement that revenue 2H FY 14 would take a hit.

Do the HC posters in here think they will be able to make 80 million revenue this year and a NPAT of say 3 million do others here feel that is achievable? It appears in their annual report they did incur some restructuring costs in the last FY preparing for this downturn in business. What do others think?

I also wonder about their professionalism compared to the other coal MS stocks such as WDS and MYE. I hold WDS and it's winning coal contracts, MYE states it will have a revenue drop but it doesn't appear as dramatic as DSB.

DSB appears to be the smaller of the ASX listed coal MS stocks. I like the huge number of shares held by the directors and staff. However if the stock was really that undervalued why aren't we getting any change of directors interest notices?

What does everyone else think about this?

Thanks,