WDS too cheap?, page-3

If you capitalise likely earnings per share at a PE of 12 you get $14m/144 mill shares x 12 =$1.17. This is profit with the coal division not firing. No borrowings , order book highest for many years and very good relations with major CSG producers. Sensible management with skin in the game. They will have to do something with spare cash at one stage....could buy back shares or invest in other businesses. Prime takeover opportunity for Thiess or Monadelphus. Good long term opportunities in CSG and if coal revives its profit could increase to $25m +which would give it a value of $2+ per share. Fantastic dividends paid quarterly.

I think this company has a lot going for it but suffers from being classified under mining services .

It is undervalued. The last rights issue was at around $1.70 .