EAL

[simrose]

Hi alonso.

 

I do not believe it is running ahead of itself, it is all there for

 

everyone to see, as I have stated before, the order book was

 

already full for the next two years, and with the six contract

 

wins already and the $2 million S.Aust & Fed Gov grant, which

 

will cover all the costs for the construction, and all the equipment

 

as in welding fabricating everything needed to construct the wind

 

turbines & towers, they are in the box seat, and not to mention

 

the $10 Million contract with bhp, santos and the building of the

 

destroyers, which is a continual contracts.

 

If you read the quarterly, and on that statement alone, you can see

 

why the s/p is still rising, as they state they will beat the previous

 

corresponding period significantly, just on the corresponding period

 

it works out at 18.5 Cents p/s npat, but they did pay $10 Million of

 

debt off, so I can see a f/f divvy of roughly 4cents, and in the next few

 

months I can see the s/p going to about 80 cents, and after that heading

 

towards $1 before the f/f divvy in the second half, if you noticed today L

 

the market is finally waking up, 11% up.

 

Regarding GUF if you have read the ann regarding the shares for

 

chairmen ! this is a positive, and I will be voting for it, they will or

 

should I say start mining very shortly, I purchased more yesterday.

 

I am glad you got on board EAL will reward you very well indeed.

 

Cheers.

 

Simmo.

[alonso]

Thanks again for your comments simrose. It always worries me when there is such a sudden

surge but I guess the story is there to back it up.

 

Re GUF, a straight miner is not in my plans atm.

[bluebug]

I have been quietly buying EAL and agree with the comments made by Simmo.

 

 

Pretty much sums up where I feel the SP and dividend will go.

 

 

Looking back they were at $1.30 and with order book, op cashflows and potential dividend increase see them moving back over the $1 mark.

 

Definitely worth watching

[bluebug]

And just in case the last post seemed like a ramp. Which I hope wasn't the case. Also keep an eye out this year for TFC.

 

This has been on a slippery slope for 2 years but they are due to harvest this year and I believe they are due for a rerate.

 

I see both these stocks as steady climbers this year and entry price not expensive.

[alonso]

hi bluebug, good to see another EAL holder here. I didn't take your post as a ramp,

justified optimism I'd say.

 

Will look at TFC.

[bluebug]

Confirmation today that this year;s half yearly result will be strong based on increased revenue and a full order book.

 

I recall watching (and not investing) in Austin Engineering. Hopefully we are going to see a build up in the share price now.

 

Up 6 cents today.

[alonso]

EAL reports 86% lift in profit and increased dividend in record

 

half year

 

Net profit after tax of $4.1 million up 86%

 

Record Operating Cash Flow from operations of $4.7 million, after

 

payment of interest and tax.

 

EBIT of $7.1 million up 48%, generating operating cash flow of $7.1

 

million before payment of interest and tax.

 

Total revenue of $97.5 million, up 25%

 

Dividend increased 25% to 2.5 cents fully franked

 

Borrowing costs and net debt levels reduced

 

[arty]

Might that already be factored in?

The recent rise, price almost doubled in a month, goes a long way to confirm that the Market had "an inkling".

 

Great news for holders though.

[alonso]

They have been telling us that a good result was coming up. A lot of people were expecting the div to be a bit bigger so am expecting a drop today.

[simrose]

Hi Arty.

 

 

Even if the share has doubled in the last month, the fully franked divvy on

 

the current s/p is a tad over a 9.0% Yield not bad at all, one of the best going around

 

if you take the 2.5% discount being offered by the company on top of that, being the

 

Five day vwap after the record date, what a bonus, you only have to look at some

 

of the other companies paying comparable divvies, and you can see what I mean.

 

I just hope some s/hs keep selling because I love a bargain.

 

On top of that the forward looking statement is great, you only have to read the

 

last half a dozen ann to the ASX.

 

I rang the company tuesday and spoke with the company secretary Mr mark Seatree

 

and asked him if they were going to do any brokerage presentations, his reply was they

 

have spoken to brokerage houses and will be doing presentations to a couple of them in a

 

few weeks, and do not be surprised if the company wins more contracts very soon.

 

I say they are a buy, and undervalued, but please do your own research.

 

Cheers.

 

Simmo.